ECB President Trichet has been speaking to the European American press club in Paris. Nothing new. On price stability Trichet says “the principle objective of the ECB is to maintain the stability of prices…which we define with great precision as price increases below 2%.”
The official feels “conditions in the money markets have improved tremendously more than would have been the case if we had not taken all these measures, but they have not normalised.” On how long he thinks the present crisis will last Trichet said “I have always responded that we are experiencing a market correction that is an ongoing process.”
The President feels “it is extremely important that each government is fully responsible for its own policies and ofcourse for its own fiscal poicies” Singling out Ireland, Trichet said “It is certainly not a weak link of the euro area, adding that there is no weak link.
