Third, PDs are also required to play the role of market-makers by always offering two-way quotes, thereby imparting liquidity. However, it has been represented that the absence of short sales constrains the market-making role of PDs. The issue for consideration is whether short sales, with appropriate safeguards would be necessary for PDs to play this role of market-making.
Given the elevated level of uncertainty, the June 2020 projections also include two alternative scenarios, a mild one and a severe one, based on different assumptions regarding the further progression of the virus and the necessary containment measures. Both monetary and fiscal policies play a crucial role in supporting the recovery in the euro area.