Making the financial system more resilient, and banks less vulnerable, is therefore the third item on the “to do list” to bring the euro area back on track. This, by the way, is not a challenge exclusive to the euro area, although it is particularly relevant there.
In 2018 the Court of Justice ruled unambiguously and finally on the legality of the ECB’s asset purchases. It also found that the ECB provided sufficient proportionality considerations.2 The ECB’s Governing Council constantly evaluates the potential side effects of its monetary policy measures – including the PSPP. This evaluation is part of the proportionality assessment underpinning the ECB’s policy choices and is publicly available.