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ECB’s Trichet on the Wires


  • ECB primary mandate is ensuring price stability
  • ECB is solidly anchoring price expectations
  • The Euro is a credible currency
  • Non-standard measures aimed at policy transmission
  • ECB decisions taken in ‘full independence’
  • Crisis revealed fault lines in all economies
  • Euro area’s major weakness is insufficient governance

Bundesbank President Weidmann Speaks in Frankfurt


  • Trichet dedicated career to European integration
  • Trichet has led ECB with skill, commitment
  • Euro is stable currency externally, internally

Jean Claude Trichet on the Wires


  • ECB had to step into bond markets wen governments delayed
  • ECB had to act when governments neglected responsibility
  • Governments responsible for financial stability
  • Treaty should be amended to allow imposed decisions
  • European nations ‘dwarves’ unless they act together
  • Euro will still exit in 10 years


ECB’s Trichet on The Wires


  • Balance of risks has changed
  • ECB stands ready to provide liquidity
  • Liquidity not an issue for Euro-area banks
  • Euro extends drop versus Pound, weakens 1.1% to 87.24 pence
  • German 10 year bond yield falls to record low 1.823%
  • Significant that inflation risks no longer on upside
  • Euro extends decline against Dollar, slides .9% to $1.3965



Trichet Interview with Interconomia Radio


  • Will look at new projections in June
  • Extraordinary measures separate from monetary policy
  • Central banks duty is to avoid 2nd round effects
  • We are never pre-committed
  • We are inflexible on preserving price stability
  • We have delivered price stability
  • ECB is asking Greece to apply the plan
  • Plan, fiscal goals must be applied in Greece
  • CAJA situation better than a month ago in Spain
  • Spain’s credibility has improved ‘impressively’
  • Much still to be done in Spain
  • Growth data encouraging

Trichet says rates are just right. Speaks in Davos

Jean Claude Trichet of the ECB is on the newswires saying that ECB rates are appropriate. He further comments that the ECB has delivered price stability and inflation expecations are anchored. He will do all that is necessary to fight inflation.

Recent data points to a gradual recovery and the banks have improved their balance sheets. He encourages banks to seek their own funds from the market and rely less on the ECB for funding.

He says that EFSF purchase of bonds could be used to recapitalize banks.

Cutting bailout interest rates is a government matter and EU Debt restructuring not in the plan.

Large number of banks have improved their balance sheet.

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