Whatever its claims, the ECB is doomed to control long-term interest rates and peripheral countries' yield spreads

Officially, the ECB still has a return of inflation to around 2% as its objective, does not intend to buy government bonds for a long time and does not interfere with fiscal policies. But the reality is very different ; one can seriously think that: The ECB may never again accept a rise in long-term interest rates, which would create a massive solvency problem for governments and companies. Like other central banks, the ECB is therefore de facto switching to yield curve control, which will require it to never reduce the size of its balance sheet; The ECB will have to continue to control yield spreads between the peripheral and the core countries, as a widening of these spreads would immediately create a peripheral-country crisis; the ECB can use the argument that controlling the peripheral countries' yield spreads is necessary to ensure a smooth transmission of monetary policies. Even though it cannot admit it, the ECB is therefore caught in the "fiscal dominance" trap: it is doomed to ensure governments’ fiscal solvency, and this trap will get worse since governments will take advantage of this situation to increase their public debt for several years to come.