ECB sought to stave off a resurgent sovereign-debt crisis with the promise of a new tool

 Greece first succumbed to turmoil more than a decade ago. 

That crisis was ultimately tamed by the OMT program. Meanwhile market stress at the onset of the pandemic was addressed with another emergency bond-buying program.

Officials have repeated recently that they’re ready to devise new instruments as required, but have disappointed markets with a lack of detail on their plans. 

With the central bank forbidden by treaty from conducting monetary financing, avoiding the creation of a tool that may incite legal challenges in countries like Germany is likely to be key. 

Bloomberg 15 June 2022

ECB Meeting Accelerates Work on Crisis Tool After Italian Bond Blowout - Bloomberg

“we are not here to close spreads”

https://englundmacro.blogspot.com/2022/06/we-are-not-here-to-close-spreads.html

To trigger the ECB’s power to buy sovereign debt under OMT, a country must first have been granted a rescue programme from the European Stability Mechanism. 

This would need a unanimous vote from all eurozone members, which gives Germany a veto.

https://englundmacro.blogspot.com/2020/04/ecb-should-not-be-used-to-finance.html

Tysklands Sinn dammar på - ECB bör avskaffa OMT och skulderna i Target skall betalas med guld

https://englundmacro.blogspot.com/2014/10/tysklands-sinn-dammar-pa-ecb-bor.html