In a similar vein, the programme for Outright Monetary Transactions has been designed with a view to combatting fragmentation while preserving the credibility of the ECB’s monetary policy objective.
By being tied to an effective macroeconomic adjustment programme, the initiative prevents the intervention on government debt markets to eliminate “redenomination risk” – the unwarranted perception of a risk of euro breakup – from becoming a subsidy for unsustainable national policies.