The pandemic emergency purchase programme (PEPP) is the programme launched in March 2020 in response to the unprecedented economic and financial shock triggered by the COVID-19 pandemic.
Initially, the PEPP involved purchases of public and private sector securities (covering the same asset classes as under the APP) for a total of €750 billion, until the critical phase of the COVID pandemic came to an end. Subsequently, in June and December 2020, the PEPP envelope was increased to a total of €1,850 billion. Net purchases of securities under the PEPP ended in March 2022; Since then, and until the end of 2024, the only purchases made under the PEPP are those for the reinvestment of the principal payments from maturing securities.
Its key feature is its flexibility in the implementation phase, which has made it possible to smooth purchases over time, across asset classes and across countries, depending on market conditions. This flexibility has helped to counter disruptions in the transmission of monetary policy, enabling the Eurosystem to fulfil its price stability mandate effectively.
For more detailed information on how the programme developed over time, see the section on the Eurosystem's public and private sector securities purchase programmes. For an overview of the measures introduced in response to the COVID-19 emergency, see the note 'The Eurosystem's monetary policy measures in response to the COVID-19 pandemic and the Bank of Italy's contribution' (only in Italian).
