Bailout Strategy in the European Debt Crisis : Outright Monetary Transactions and the EU’s ‘New Deal’

Thanks to the implementation of a series of unprecedented measures by the troika of the EC, the ECB and the IMF, the cost of Spanish and Italian government bonds has fallen steadily since mid-2012 and now Europe’s financial stability has improved significantly. The author reviews the development of this ‘European bailout strategy’, focusing on two crucial and innovational instruments, the unlimited yield-lowering bond purchases (OMT) pursured by the ECB and ‘The EU’s New Deal’ (The Compact for Growth and Jobs) worked out by the EC