The most prominent of these developments is the contraction in the housing market that began in early 2006. Both the prices and pace of construction of new homes rose to unsustainable levels in the preceding few years. For a time, the resulting correction was largely confined to the housing market, but the consequences of that correction have spread to other sectors of the economy.
Let me explain how we safeguard our independence. In the summer of last year, passive inaction was no more an option because it would have posed the greatest risks. Therefore, the ECB, learning from previous experience and in compliance with its mandate, had to act - but it would only intervene within a framework that would ensure full fiscal compliance by the governments concerned.