EPP Group Spokesman for Economic and Monetary Affairs, Markus Ferber MEP, welcomes the new Pandemic Emergency Purchase Programme of the European Central Bank (ECB), but questions if it can repair the supply chains, which have been broken due to the spread of the coronavirus.
“It is laudable that the ECB is determined to fight the economic fallout of the coronavirus, but the ECB would be well-advised to show some moderation. Even the biggest asset purchasing programme will not be able to mend broken supply chains. The ECB must be very careful not to cross the line into monetary state financing”, Ferber says.
Ferber stresses that the programme must be limited in time. “If the goal was to supply the financial system with liquidity, this would have been possible with additional targeted long-term refinancing operations as well. It will be crucial to wind down this new programme as soon as the state of the economy recovers. We must not allow asset purchases at this level, to continue perpetually”, Ferber explains