The first component relates to broad-based asset purchases to address illiquidity and heightened volatility in core segments of euro area financial markets that threatened to impair the smooth transmission of our monetary policy. The temporary pandemic emergency purchase programme (PEPP) constitutes the core of this component.
It foresees purchases at a volume of € billion of eligible private and public securities throughout this year, and longer if needed. The second component consists of measures that ensure that banks remain reliable carriers of our monetary policy and continue lending to the real economy.