2010/281/: Decision of the European Central Bank of 14 May 2010 establishing a securities markets programme (ECB/2010/5)

20.5.2010 EN Official Journal of the European Union L 124/8
DECISION OF THE EUROPEAN CENTRAL BANK
of 14 May 2010
establishing a securities markets programme
(ECB/2010/5)
(2010/281/EU)
THE GOVERNING COUNCIL OF THE EUROPEAN CENTRAL BANK
,
Having regard to the Treaty on the Functioning of the European Union, and in particular to the first indent of Article 127(2) thereof,
Having regard to the Statute of the European System of Central Banks and of the European Central Bank (hereinafter the ‘Statute of the ESCB’), and in particular the second subparagraph of Article 12.1, Article 3.1 and Article 18.1 thereof,
Whereas:
(1) Pursuant to Article 18.1 of the Statute of the ESCB, national central banks of Member States whose currency is the euro (hereinafter the ‘euro area NCBs’) and the European Central Bank (ECB) (hereinafter collectively referred to as the ‘Eurosystem central banks’) may operate in the financial markets by, among other things, buying and selling outright marketable instruments.
(2) On 9 May 2010 the Governing Council decided and publicly announced that, in view of the current exceptional circumstances in financial markets, characterised by severe tensions in certain market segments which are hampering the monetary policy transmission mechanism and thereby the effective conduct of monetary policy oriented towards price stability in the medium term, a temporary securities markets programme (hereinafter the ‘programme’) should be initiated. Under the programme, the euro area NCBs, according to their percentage shares in the key for subscription of the ECB’s capital, and the ECB, in direct contact with counterparties, may conduct outright interventions in the euro area public and private debt securities markets.
(3) The programme forms part of the Eurosystem’s single monetary policy and will apply temporarily. The programme’s objective is to address the malfunctioning of securities markets and restore an appropriate monetary policy transmission mechanism.
(4) The Governing Council will decide on the scope of the interventions. The Governing Council has taken note of the statement of the euro area Member State governments that they ‘will take all measures needed to meet their fiscal targets this year and the years ahead in line with excessive deficit procedures’ and the precise additional commitments taken by some euro area Member State governments to accelerate fiscal consolidation and ensure the sustainability of their public finances.
(5) As part of the Eurosystem’s single monetary policy, the outright purchase of eligible marketable debt instruments by Eurosystem central banks under the programme should be implemented in accordance with the terms of this Decision,