This should over time support lending to firms and households across the euro area. These actions have pulled the euro area back from the very dangerous situation we faced last year. But the crisis of public and private debt in some countries is clearly not over. The recent rise in Spanish yields is evidence of this.
This is no longer a problem that can be addressed through bigger firewalls or a more active ECB. It can only be addressed through consistent and determined reform, even if it is painful in the short term. In the Spanish case the shift in market sentiment is a result of poor communication on deficit targets and delays in announcing the budget.