04 October 2011

ECON Committee: Last monetary dialogue with the ECB under the Presidency of Jean-Claude Trichet

Trichet made the following observations:

• In November 2003, three weeks into his mandate, the ECB lambasted the fateful decision of the Council that effectively watered down the Stability and Growth Pact. At that time he had said: “The failure to respect the rules and procedures foreseen in the Stability and Growth Pact risks, in our view, undermining the credibility of the institutional framework and confidence in the sustainability of public finances across the euro area”.
• In 2005, six years ago, in the name of the Governing Council he both expressed  “grave concerns” as regards the conclusion of the negotiations on the new text of the Stability and Growth Pact, and also raised alarm bells as regards the evolution of the competitive indicators of the various countries member of the euro area.
• Well before some sovereigns run into trouble in 2008, the Parliament also “requested that Member States in the euro area strengthen the effective coordination of economic and financial policy.
• When the time came to transform these messages into ambitious legislation, the Parliament immediately seized the opportunity. The EP was fully supported by the ECB.

Full speech

Press release - European Parliament

Sharon Bowles MEP thanks outgoing European Central Bank President for hard work

© ECB - European Central Bank