Bank of France governor and ECB governing council member on the wires with his annual report

  • Euro strength is a poweful deflationary factor
  • if euro was at end-2012 levels then inflation would be closer to 1%
  • Eurozone facing risk of “too low” inflation
  • timing is crucial for Hollande plan on charges and spending
  • French companies face excessive red tape
  • ECB ready to use unconventional measures