After 2010, not only did Greece, Ireland, and Portugal receive support from the EU and the IMF, but the fiscal problems are now spreading to the larger southern European economies of Spain and Italy. Yields on government bonds in those countries rose, or, in other words, bond prices fell. The assets of financial institutions deteriorated, generating instability in their respective financial systems.
Specifically, the Bank is clearly committed to “achieving the price stability target of 2 percent at the earliest possible time, with a time horizon of about two years.” The second pillar is the demonstration of “concrete actions” that underpin the first pillar’s commitment.