Monetary dialogue with Mario DRAGHI, President of the European Central Bank:
- extracts from the statement by Mario DRAGHI, President of the European Central Bank
EP Committee on Economic and Monetary Affairs
Lieu: Brussels, Belgium - European Parliament
End production: 09/10/2012 First transmission: 09/10/2012
Mario Draghi, president of the European Central Bank (ECB), discussed the latest developments in the euro zone with MEPs, focusing on measures to help EU countries tackle their problems.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the EP, Brussels.
||SOUNDBITE (English) Mario DRAGHI, ECB President: "Economic activity contracted in the second quarter of 2012. Looking ahead, we expect weak economic activity in the near term and only a very gradual recovery after that. The risks to this outlook are on the downside, mainly related to the tensions in several euro area financial markets."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "The ECB stands ready to undertake, under appropriate conditions, what we have called outright monetary transactions (OMTs). These provide a fully effective backstop to avoid destructive scenarios that might threaten price stability in the euro area."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "The ECB will conduct OMTs if and as long as countries comply with strict and effective conditions attached to an appropriate programme via the European Financial Stability Facility and the European Stability Mechanism. Conditionality preserves the primacy of our price stability mandate and ensures that OMTs will not compensate for a lack of fiscal action. Conditionality in particular preserves the incentives for governments to continue with economic and fiscal adjustments. And only if conditionality is fulfilled will the OMTs be successful in moving an economy towards what we might call a ‘good equilibrium’."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "Consistent with the Treaty prohibition of monetary financing, the ECB will only conduct transactions on secondary markets, buying from investors and not from governments. Purchases will focus in particular on government bonds with remaining maturities of between one and three years."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "The ECB welcomes the possibility of involvement of non-euro area Member States in the SSM. The participation of additional Member States would provide an even stronger boost to the completion of the single market."
||SOUNDBITE (English) Mario DRAGHI, ECB President: Irrespective of the precise schedule for the performance of supervisory tasks, I believe that it is very important that the Council Regulation enters into force as envisaged on 1 January 2013. This would allow us to start the preparatory work as swiftly as possible."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "A common resolution regime – with an independent European resolution authority at its centre – is crucial for managing crises in a way that is as orderly, effective and efficient as possible."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "The euro area is making good progress towards achieving stable and sound foundations. I trust that in October and subsequently in December, the Heads of State or Government will reaffirm their commitment to the irreversibility of the euro by agreeing on a long-term vision for our economic and monetary union."
||SOUNDBITE (English) Mario DRAGHI, ECB President: "I am confident that the euro area and its currently weaker members will emerge from the crisis with stronger and better functioning economies – and that this will be to the benefit of all Europe’s citizens. Thank you very much". End of speech.