It will help to revive inter-bank lending and cross-border credit flows, with tangible effects for the real economy. And combined with possible direct recapitalisation of banks by the European Stability Mechanism and an envisaged single resolution mechanism, the SSM will go a long way towards breaking the vicious feedback loops between sovereigns and banks.
I hope that the legislative process can now be concluded swiftly. After the adoption of the relevant legal acts, the European Central Bank (ECB) will launch the preparations so that the SSM can be established within the timeline foreseen by the legislators. In my introductory remarks today, I will first briefly summarise the economic and monetary situation.