According to Lagarde, Pepp, the ECB’s securities purchase program for the pandemic emergency, is “the most appropriate tool in our arsenal to strengthen the monetary policy impulse”“We remain totally committed to our mandate, this is out of the question,” he added. “The ECB can deviate from the capital key, it has deviated from the capital key and will deviate,” assured Lagarde referring to the faculty of the new Pepp program to purchase country debt to a different extent than the share of each country in the capital of the ECB. Lagarde, speaking to the European Parliament, answered a question about the purchases of Italian debt, higher than 30% of the total despite a 17% share of Italy in the capital of the ECB. “The capital key provides a general indication for purchases, but it doesn’t have to be applied every time, there may be deviations,” he explained.
Regarding the proposal to reform the European multiannual budget and the Next Generation Eu of the European Commission, the president of the ECB said: “For the single market to function as a driving force for convergence, European companies must compete on similar conditions. For the benefit of all, European spending should aim to restore a level playing field and support those most affected by the crisis “.
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