This conditionality is a necessary condition, since the ECB Governing Council will decide on the start, continuation, and suspension of OMTs in accordance with its mandate, once a country under examination adopts the program. I believe that such an imposition of conditionality on the activation of an asset purchase program is an action rarely seen in the recent history of central banking.
I am confident that the bail-in rules will be complied with and that taxpayers’ money will only used as a last resort. Is the ECB really the institution that should deal with banking supervision? Aren’t you afraid of reputational risks? Not really. We will keep supervision strictly separate from monetary policy.