It is for this reason that there is a requirement of countries having an adjustment programme to be considered for Outright Monetary Transactions (OMTs). Such a programme must entail conditionality that ensures fiscal discipline. With fiscal discipline, monetary policy cannot become captured by fiscal dominance. And therefore, the central bank can continue its pursuit of safeguarding price stability in full independence.
And there is one more important lesson from 2012 that we must keep in mind: measures to stabilise the euro area, particularly the OMTs, are not only essential for price stability. They also reduce Target2 balances and, because they foster the cohesion of the euro area, they reduce possible risks for German taxpayers.