Monetary dialogue with Mario DRAGHI, President of the European Central Bank:

Type: News   Reference: 91627   Duration: 00:03:21  Lieu: Brussels, Belgium - European Parliament
End production: 18/02/2013   First transmission: 18/02/2013
- extracts from the statement by Mario DRAGHI EP Committee on Economic and Monetary Affairs Background: Mario DRAGHI, President of the European Central Bank and also chair of the European Stability Risk Board (ESRB), visited today the European Parliament to meet with the members of the ECON-Committee. There, he addressed the members under these two clearly distinguished roles, as President of the ECB and within the framework of the Monetary Dialogue, DRAGHI presented to the ECON-Members the perspective of the ECB on Economic and Monetary Developments and entered in a discussion in a discussion with MEPs covering issues such as the establishment of a Single Resolution Mechanism for Problem Banks in Europe and implications of the current low interest environment.

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00:00:00 Title 00:00:05
00:00:05 Exterior shot of the European Parliament, Brussels, Belgium (1 shot) 00:00:05
00:00:10 Interior, atmosphere before the exchange of views with Mario DRAGHI, ECB President, and the EP Committee on Economic and Monetary Affairs , (3 shots) 00:00:00
00:00:10 Interior; Arrival shot, (1 shot) 00:00:11
00:00:21 SOUNDBITE (English): Mario DRAGHI, President of the European Central Bank: Even though we have yet to see sustained improvement in the real economy, survey indicators have confirmed earlier evidence of a stabilisation of business and consumer confidence, albeit at low levels. Taking a somewhat longer view, the improvement in financial market confidence since last summer has been significant. 00:00:26
00:00:47 SOUNDBITE (English): Mario DRAGHI, President of the European Central Bank: The risks surrounding the economic outlook for the euro area continue to be on the downside. They relate to the possibility of weaker than expected domestic demand and exports, slow implementation of structural reforms in the euro area, as well as geopolitical issues and imbalances in major industrialised countries which could both have an impact on developments in global commodities and financial markets. These factors have the potential to dampen the ongoing improvement in confidence and thereby delay the recovery. 00:00:40
00:01:27 SOUNDBITE (English): Mario DRAGHI, President of the European Central Bank: A natural question is whether monetary policy should be used actively to contain asset price booms and bubbles – a response known as ‘leaning against the wind’. Thanks to our monetary policy strategy, implicitly we do this to some extent. We focus on the medium-term horizon and take account of monetary developments in assessing risks to price stability. 00:00:29
00:01:56 SOUNDBITE (English): Mario DRAGHI, President of the European Central Bank: In a situation where a cross-border resolution is required, the Single Resolution Authority would avoid national focus and pursue the optimal resolution strategy, thus mitigating coordination problems. The second reason is that the Single Resolution Authority would credibly pursue the least cost resolution strategy, assessing possible cross-border spillover effects and systemic concerns, and ensuring that resolution costs are first and foremost borne by the private sector 00:00:37
00:02:33 SOUNDBITE (English): Mario DRAGHI, President of the European Central Bank: the Single Resolution Authority needs access to resolution financing. It should therefore have a European Resolution Fund at its disposal, which should be financed by the private sector via risk-based ex ante levies. The European Resolution Fund should be backed by a public backstop mechanism, the support of which would need to be recouped via special ex post levies on the private sector. This means that it would be fiscally neutral over the medium term. 00:00:35
00:03:08 cut away shots, (6 shots) 00:00:13
00:03:21 END 00:00:00
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