The ECB signalized that it was ready to activate the program once all prerequisites were in place. It would also have “full discretion” to suspend the OMTs as soon as all the objectives were reached or in case of an unfulfillment of conditions.
The Council expects inflation to stay above 2% in 2012 and then fall below this level. It assures that “inflation expectations for the euro area continue to be firmly anchored in line with the Governing Council’s aim of maintaining inflation rates below, but close to, 2% over the medium term.”
The report also states that despite the introduction by the ECB of conventional and unconventional monetary policy measures, aimed at supporting GDP momentum in the Eurozone, growth “is expected to remain dampened by the necessary process of balance sheet adjustment in the financial and non-financial sectors, the existence of high unemployment and an uneven global recovery.”
Finally, the report stresses the importance of the implementation of structural reforms by the EU Member States in order to stimulate competitiveness and employment and reduce deficits.