FRANKFURT (MNI) – European Central Bank President Jean-Claude
Trichet called again for European Union countries not to weaken the
Stability and Growth Pact as they had in the previous decade.
In a speech here, Trichet also repeated his plea for vigorous
economic governance in the Eurozone.
He was upbeat about the prospects for the Eurozone, saying, “I have
every confidence that the future of the euro is one in which we can take
pride.”
He urged “more automatic and speedy procedures” and “a broader
range of enforcement tools,” which “in our view are required at the euro
area level.”
“We think that we need greater ambition in governance reform,” the
ECB chief said, reminding that “we have seen more than ever the
importance of a timely correction to fiscal imbalances.”
Four out of five Eurozone citizens want more economic coordination,
Trichet argued. Thus, “our fellow citizens want a stronger coordination
of economic, and fiscal policies.”
The president reiterated that the ECB has kept its promise by
maintaining price stability in the medium term. “We said that we would
deliver price stability in line with our definition,” he said, noting
that since the launch of the single currency area, average inflation has
been 1.97% — within the ECB’s goal of close to but below 2%.
“For the next five years, professional forecasters foresee
inflation that will be again in line with our definition,” Trichet
pronounced.
Indeed, the bank’s commitment to price stability is supported by
the Eurozone’s citizens. They “want price stability by an overwhelming
majority…they are also very strongly, by an overwhelming majority, in
favor of an independent central bank that will deliver price stability.”
–Frankfurt bureau tel.: +49-69-720142. Email: frankfurt@marketnews.com
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