In the case of more profound structural economic weaknesses and debt sustainability problems, there is always the option to activate Outright Monetary Transactions, which would be preceded by a programme of the European Stability Mechanism. The OMT programme was created in August-September 2012, operationalising Draghi’s ‘whatever it takes’ speech, which helped greatly to put a stop to the eurozone debt crisis.
While fiscal-monetary interaction is a basic feature of policy coordination in a currency union like the eurozone, it cannot be in contradiction with the independence of central banks. We are fully committed to preventing fiscal dominance – and/or financial dominance, for that matter.