Moreover, the extra exposure to any single country that the Eurosystem might acquire as a consequence of OMT activation is secured by strict conditionality: as a precondition for OMT activation, the country would first have to commit to a macroeconomic adjustment programme under the European Stability Mechanism (ESM).
It is worth noting that in June 2015 the European Court of Justice ruled that, given the strict modalities for their activation, OMTs fall within the scope of the ECB’s mandate and include sufficient safeguards to avoid monetary financing. A number of safeguards apply to public sector bond purchases under the PSPP too.