These measures aim to ensure as homogeneous a transmission of monetary policy as possible across euro-area countries, ensuring the smooth normalization needed to bring inflation back into line with the price stability objective.
The announcement of the Council’s decisions contributed to a sudden and significant reduction in public bond spreads; the peak of around 250 basis points reached in the spread between Italian and German ten-year government bond yields shortly before mid-June is inconsistent with the fundamentals of Italy’s economy.