Questionnaire:

What would be the guiding objectives you will pursue during your eight-year mandate as President of the ECB?

First and foremost, I shall fully respect the Treaty mandate. I firmly believe that three principles remain fundamental in guiding the action of the future President of the European Central Bank, taking into account the objective of price stability as enshrined in the Treaty. First, the highest level of credibility in the pursuit of the very same price stability objective. Second, acting with full independence in the general interest of the euro area, the EU as a whole and of their citizens. Third, medium-term orientation – coupled with retained healthy dose of pragmatism – in the assessment of the permanently evolving financial and economic environment. Let me add that I regard integrity, transparency and accountability as crucial values for the exercise of the important responsibilities entrusted to the ECB.

What is your assessment of the monetary policy as it has been implemented by the European System of Central Banks (ESCB) for 12 years? What changes, if any, would you promote when becoming President?

In line with our mandate under the Treaty, we are expected to deliver price stability over the medium term for the euro area as a whole. In this respect, the ECB has been very successful in delivering price stability to all citizens in the euro area. This is evidenced by an average inflation rate in the euro area of below, but close to, 2% over the past 12 years, in line with the ECB’s definition of price stability. This achievement is even more noteworthy when considering the numerous headwinds the euro area has had to weather, such as substantial increases in oil prices, almost on a continuous basis, and other commodity prices, and the financial crisis, to name only a few.

In addition, and as a reflection of the credible delivery of stable prices over the past 12 years, inflation expectations have remained firmly anchored at a level consistent with our aim to maintain inflation rates in the euro area below, but close to, 2% over the medium term. Such anchoring is important for the effectiveness of monetary policy, i.e. the delivery of price stability also in a forward-looking manner. In my opinion, this anchoring is a clear signal that financial markets and the public at large attach great credibility to our commitment and capacity to conduct our single monetary policy in a way that allows for the achievement of price stability.

The fact that inflation expectations remained broadly stable even during the financial crisis, when some commentators were painting deflation scenarios, and when inflation was negative for several months, can be seen as an indication of the credibility of ECB’s monetary policy. In light of this, I see no reason for introducing changes to the way we have conducted monetary policy in the past 12 years.

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