The measures adopted by the ECB Governing Council have greatly curtailed the risk of deflation and paved the way for a gradual return to monetary stability.
The ECB has in fact developed this activity in line with the Treaty, which stipulates that the ESCB “shall contribute to the smooth conduct of policies pursued by the competent authorities relating to the prudential supervision of credit institutions and the stability of the financial system” (Art. 105.5). 9 With respect to financial stability, I will address two questions.