This is why last week, the Eurosystem decided on further steps to incorporate climate change considerations into its monetary policy operations. Step by step, we will decarbonise our corporate bond holdings. That means that we will look at the climate performance of the bond issuers and increase the share of assets issued by companies with a better climate performance.
It harbours legal pitfalls: restricting the authority’s powers to the euro area is hardly covered by Article 114 of the Treaty on the Functioning of the European Union (TFEU) and also poses the threat of conflicts of interest. Resolution and state aid would be merged into one single authority.