Trichet: snelle uitvoer maatregelen kan in 2010 tot economisch herstel leiden (en)

Recovery in 2010 would possible only if the policy decisions already taken are implemented "as rapidly as possible", said the European Central Bank President Jean-Claude Trichet on Monday, answering questions from the Economic and Monetary Affairs committee.

During the regular dialogue between the committee and ECB President, Mr Trichet said recovery in 2010 will happen only if the right decisions agreed so far at international level are correctly and timely implemented.

What role for the Central Bank in financial supervision?

In his introductory remarks, Mr Trichet recalled that the European Parliament had called, last autumn, for more involvement of the European Central Bank (ECB) and the European System of Central Banks in the supervision of financial markets.

The same proposal was then put forward few weeks ago in the report by the high-level group chaired by Jacques de Larosière, which proposes setting up a European Systemic Risk Council. He said: "the fact that the Systemic Risk Council would be set up under the auspices of the ECB and the ESCB would allow it to benefit from the analytical capabilities and technical infrastructures developed by central banks in its analysis of monetary and financial stability."

"In this context, the Systemic Risk Council will have to rely on a wide range of macro- and micro-prudential data. This implies that the ECB and the ESCB should have access to the relevant micro-prudential information from supervisors", he added.

"Growth in 2010 depends on us"

Elisa Ferreira (PES, PT) asked: "Is it possible to revitalise financial markets, with banks starting to lend again, before real economy recovers?" She added: "What is recovery plan’s goal? Jobs?"

"The goal is to have both growth and jobs", explained Mr Trichet. What is key to ensure recovery, the ECB President added, is "doing what has been decided, as rapidly as possible". "Growth in 2010 depends on us" he said.

Coherence between short and long term objectives

Gunnar Hökmark (EPP-ED, SW) asked about the consequences of the current increase in public spending to face the financial and economic crisis.

"If we lose the medium and long term path, then we are not (...) reinforcing confidence", said the ECB President. Therefore, there should be no contradiction between short and medium-long term elements in fiscal policy: "both are very important", he added.

G20 and regulation of financial products

Wolf Klinz (ALDE, DE) wondered whether, on the eve of the G20 meeting, the US and EU objectives were the same. Particularly, he asked on the regulation of financial markets products, where the EU aims at a comprehensive framework for all available products, while it seems the US would focus on those of "systemic relevance".

The ECB President replied he is confident in both powers having the same goals in mind. "I expect the unity of all participants (...) on actions and reforms" to be implemented, he said. "We need global diagnosis and global decisions", he added.

30/03/2009

In the chair : Pervenche Berès (PES, FR)