15 January 2019

ECB: Debate about the Annual Report

The first two decades of the euro area have seen an evolution in the way the ECB conducts its monetary policy. Faced with unprecedented threats to price stability, the ECB adapted its policy instruments to continue delivering on its mandate. ECB will continue to do so if and when needed, in compliance with its mandate as defined by the EU Treaties, and with all the independence over its tools as defined by ECB‘s legal framework.

Mr. Draghi says: “Today, we can say that the euro area has emerged from a crisis so severe as to threaten at times its existence. We are out of it, primarily because of the resilience, the energy, and the entrepreneurial capacity of European citizens, as well as their trust in their leaders’ commitment to the euro. Our policy response and the important changes to the architecture of the EMU in the meantime also helped the euro area out of the crisis. In many ways we have a stronger monetary union today than we had in 2008. This is also reflected in the euro’s popularity among euro area citizens, which is currently at its highest level since it was introduced. But more work is still necessary to complete the EMU, so as to make it more resilient in the face of future crises.”

To deliver its full benefits, the European Union requires permanent political commitment, at both national and European levels, and across policy areas.

Mr. Draghi continues: “In this respect I can testify to the essential role the European Parliament has played during the challenging years of the crisis. And I am certain that it will also be fundamental in carrying out the remaining work until the completion of the EMU.“

The credibility of the ECB rests on its independence and this is based on its accountability with respect to its mandate, as enshrined in the EU Treaties. The European Parliament in holding the ECB to account gives legitimacy to its independence.

Full speech

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