BIS central bankers’ speeches  3  Question: How do you explain the SMP to ordinary citizens who fear that the ECB is engaged in the monetisation of debt and creation of inflation? As you know, securities are purchased by the Eurosystem in the secondary market, after they have been issued and found a first buyer.
These nationally implemented norms could help “internalize” the fiscal discipline in each country and render the matter less of an issue of EU policing of the countries’ current fiscal actions. In the Finnish case, for example, we have good experiences with medium-term budgetary frameworks. This system has made it easier to follow a planned fiscal policy and resist oneoff pressures for increasing government spending.