on the next generation eu recovery fund, which will provide a €750 billion shared budgetary instrument at european level. this goes beyond the €540 billion european safety net adopted earlier this year and will notably complement fiscal stabilisers at the national level. continued fiscal support will remain crucial to sustain the ongoing recovery – assuming fiscal spending is efficient and effective. 2 / 3 bis central bankers'speeches looking ahead, in the current environment of elevated uncertainty the ecb governing council will assess incoming information very carefully, including developments in the exchange rate, while ensuring that this incoming information, such as information on containment measures which is already included in our baseline, is only accounted for once in our assessment. the governing council continues to stand ready to adjust all of its instruments, as appropriate, to ensure that inflation moves towards its aim in a timely and sustained manner. 1 i am grateful to demosthenes ioannou and nick ligthart for their contributions to these remarks. 2 gross take - up was €1. 308 trillion in june 2020 and €175 billion in september 2020, and the net liquidity injection considering peltros ( pandemic emergency longer - term refinancing operations ) and tltro ii repayments was €548 billion in june 2020 and €158 billion in september 2020. 3 / 3 bis central bankers'speeches

gross allotment in the june and september tltros of nearly €1. 5 trillion. in net terms, the liquidity injected by these operations amounted to €706 billion. 2 tltro funding has also been effective in easing the terms and conditions for loans to households and firms. euro area lending rates to businesses are near all - time lows. our estimates, as well as responses by banks to our bank lending survey, indicate that the tltros have helped compress these lending rates, which means that banks are passing on the favourable conditions of our lending operations to their customers. another key policy tool during this unprecedented shock has been the pandemic emergency purchase programme ( pepp ). the pepp was launched with an initial envelope of €750 billion in march and was increased by €600 billion in june. it has a dual goal : to stabilise markets and thus ensure the smooth transmission of our monetary policy, and to help counter the substantial downgrade to our inflation outlook caused by the pandemic and thus help return inflation closer to our definition of price stability in a timely fashion. the pepp has countered, for example, a rise in sovereign bond yields and has thereby averted a tightening of funding conditions for households, corporates and banks during the pandemic. with markets stabilising and the risk of fragmentation subsiding, the role of the pepp in easing our monetary policy stance and supporting the inflation outlook has now become more important, even though it is an exceptional pandemic - related tool unlike our other unconventional monetary instruments. without these mutually reinforcing policy measures, the outlook for inflation and growth would be much worse. staff estimates show that our policy decisions on asset purchases and tltros will cumulatively contribute around 0. 8 percentage points to the annual headline inflation rate and 1. 3 percentage points to real gdp growth between 2020 and 2022. these estimates might even be conservative, as they do not account for the benefit of preventing adverse nonlinear dynamics that could translate into a de - anchoring of inflation expectations and cause large contractionary effects. finally, i want to stress that fiscal support measures have been a crucial complement to the ecb ’ s crisis response. without countercyclical fiscal policy measures, such as loan guarantees, moratoria and job retention schemes, the adverse economic impact of the pandemic would have been much more substantial. european leaders have also sent an important signal with their landmark agreement