the beginning of the second phase of reform, which rests on three basic pillars : the banking union, further fiscal integration and greater economic policy coordination. as to the ecb, it has contributed to providing stability to the euro area both through its more conventional remit, i. e. setting interest rates, and through its less conventional facet, namely supplying exceptional amounts of liquidity through unorthodox channels. but the roots of the current crisis in the euro area are not of a monetary nature and, consequently, monetary policy alone cannot resolve those problems. monetary policy can, however, provide more time for the remedies aimed at resolving the underlying problems to be effective. on 2 august the governing council of the ecb adopted a new non - conventional measure : the so - called outright monetary transactions. this programme of purchasing government bis central bankers ’ speeches debt on secondary markets, subject to compliance with certain macroeconomic conditions, aims to repair the monetary policy transmission mechanism, thus ensuring that the effects of the expansionary conventional measures adopted from the onset of the crisis reach european households and firms alike, irrespective of their country of residence. this ecb decision has had a stabilising effect on markets and eased the pressure on the spanish economy, although financial conditions remain very tight and uncertainty continues to weigh on households ’ and firms ’ spending and investment decisions. as stated, euro area measures should contribute to restoring the transmission channels of monetary policy and, thereby, reduce financial tensions. they should also help to sever the problematic public finances / banking system feedback loop, a vicious circle which contributes to prolonging the climate of uncertainty and makes it difficult to resolve the problems facing the euro area. nevertheless, it should not be forgotten that the scope of these actions is limited and that definitively overcoming the crisis in spain will depend on the progress achieved in other domains, including those which depend on our own economic policy. the spanish economy the challenges facing the spanish economy are well - known : reducing its high dependence on external financing, sustainably correcting the budget imbalance and strengthening the drivers of medium - and long - term growth through substantial and lasting improvements in competitiveness. naturally, completing the clean - up and restructuring of the banking system is also a key factor in this strategy, and i will briefly refer to this later on. significant steps have been taken in addressing these challenges. nonetheless, the ongoing adjustment of the spanish economy is at a delicate juncture, since there are no perce

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