FRANKFURT (MNI) – Inflation expectations in the Eurozone are
anchored in line with the European Central Bank’s intentions, and the
ECB will continue to ensure price stability in the future, the bank’s
president Jean-Claude Trichet said Friday.
Giving the keynote address at a central banking conference here,
Trichet argued that the recent crisis in Europe is the result of unsound
fiscal policies in a number of EMU countries, bad macroeconomic policies
and inadequate surveillance of those policies by all member states.
“That is why we call for a very ambitious reform of euro area
governance — a reform that will address the root causes of the current
situation and make it simply impossible to happen again,” he said.
The solution to the current problems lies in ensuring that future
fiscal and macroeconomic policies are the right ones and they are
monitored with a “far more effective system of surveillance,” he said.
Trichet said there was some “good news,” which is that “all the
efforts to strengthen the economic attribute of our union will be
supported by a monetary policy that will ensure price stability.” He
noted the success of the ECB over nearly 12 years in keeping inflation
at under 2%, which is its inflation goal.
“What is more, looking ahead, inflation projections and inflation
expectations are well anchored in line with price stability,” he said.
[TOPICS: M$$EC$,M$X$$$,M$$CR$,MGX$$$]
