With pressure being reduced via the capital markets and given the security gained from the sizeable fiscal support funds, motivation to decrease deficits and debt evidently also declined. Calls for “flexibility” in the fiscal rules grew louder, and the European Commission eventually gave in to the political pressure.
The Central Bank is firmly committed to deploying such tools on an ongoing basis, with periodic reviews to ensure that the measures are appropriately calibrated. I expect the first review of the mortgage rules to be published by November this year.