All our non-standard measures help to restore a more normal monetary policy transmission mechanism, which is necessary to fulfil our primary mandate of maintaining price stability in the medium term. In recent weeks, the tensions associated with the Irish fiscal problems and the reorganisation of its banking sector have led to renewed bouts of high volatility in financial markets.
More than ever it is important that governments step up consolidation in way that is credible and lays the foundation for sustainable long-term growth. There is a clear need to strengthen public confidence in the capacity of governments to return to sustainable public finances and thus support sustainable growth over the medium term.