Carrying out its function as supplier of liquidity to the banking system with determination, the ECB countered the banks’ fund-raising difficulties and the restriction of credit.
The action of the ECB, the incisive budget measures taken in the countries suffering from the worst financial turmoil, and the reaching of an agreement for stronger cooperation under the fiscal compact have succeeded more recently in easing the strains in the government securities market and in banks’ balance sheets. Monetary policy alone cannot resolve the crisis.