Monetary dialogue with Mario DRAGHI, President of the European Central Bank :
- MEPs debate
EP Committee on Economic and Monetary Affairs
Lieu: European Parliament, Brussels
End production: 18/02/2013 First transmission: 18/02/2013
ECB President Mario DRAGHI addressed MEPs at the regular monetary meeting in the European Parliament on Monday 18th of February 2013 in Brussels. The event was organised by the Economic and Monetary Affairs Committee.
MEPs stressed the need for an agenda for growth, and several argued that austerity measures within several European countries have failed.
During the meeting were discussed the notions of : Integrated financial framework in the EU, Single Supervisory Mechanism, Deposit guarantee mechanisms, Integrated budgetary framework in the EU and the establishment of a genuine euro area safe and liquid asset.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||External view of European Parliament
||Cutaways (6 shots)
||SOUNDBITE (in FRENCH), Jean-Paul GAUZES (EPP, FR) : There seems to be a split for much of the general public between the fact that confidence is returning to financial market and the fact that there is no positive impact in the real economy.
||SOUNDBITE (in ENGLISH), Mario DRAGHI, President of the European Central Bank : "There are three reasons why banks may not lend to the real economy. One is lack of funding; another one is lack of capital; and the third is simply risk aversion. We have addressed the first, we cannot address the second, possible lack of capital, and we certainly cannot address the third".
||SOUNDBITE (in PORTUGUESE), Elisa FERREIRA (S&D, PT) : "The six packs allow us for manoeuvre but over time we hope there will be less violent measures. Will the Central Bank take that into account as a member of the troika when looking at whether or not the strategy has been a success so far and what improvements can be made in certain countries?"
||SOUNDBITE (in ENGLISH), Mario DRAGHI : " How do we meet again the effect of fiscal consolidation? One answer, certainly, is properly design fiscal consolidation as based more on expenses cuts than on tax rises. The second point is really the fast and effective implementation of structural reforms in the product markets and in the labour markets. But there is a third aspect on which countries governments should focus. It has to do mostly on the credibility of the fiscal plans. If governments have a medium turn detailed fiscal plan that helps to reassure markets."
||SOUNDBITE (in ENGLISH),Wolf KLINZ (ALDE, DE) : " In my county in Germany, members of the Bundestag, all parties as a matter of fact, have made it quite clear that they will no be able to endorse a financial aid package for Cyprus, unless Cyprus take a number of important decision. What is your analysis and assessment how far the Cyprus government would be able to meet those expectations?"
||SOUNDBITE (in ENGLISH), Mario DRAGHI, President of the European Central Bank : " I don't wan to prejudge the discussions that have taken place and the one that will take place to say now how this sustainability is going to be reached. But we have to keep in mind that we have two sides on this. On one hand we want to make sure that Cyprus has that sustainability. On the other, we have to make sure that we don't create financial instability".
||SOUNDBITE (in ENGLISH), Robert ZILE (ECR, LV) : "For non-eurozone countries there is no access for recapitalisation in the case it is needed very urgently. Can you describe please the situation how do you see we can create, not disturb the single market in financial sector".
||SOUNDBITE (in ENGLISH), Mario DRAGHI, President of the European Central Bank : " Non euro area countries that could join ESM and ESSM, at that point, their banks will be subject to the single supervisory mechanism and therefore could become potentially eligible for the direct recapitalisation if the conditions are there as stated and decided by the ESM. So there is no intention to break, to fragment the single market. It should be a contribution to the working of the single market"
||SOUNDBITE (in Portuguese), Marisa MATIAS (GUE/NGL, PT) : "I don't think we can continue to impose conditions on member states which are borrowing money and not impose conditions on banks".
||SOUNDBITE (in ENGLISH), Mario DRAGHI : "The problem that we have now, and that mostly affects employment and growth in the Euro area is with SMEs. The SMEs account for, by large 75 % of employment in the Euro area, and most of the SMEs finance themselves via the banking system. How do we create the situation whereby the liquidity that we have put in the system finds its way from the banking system into the SMEs? That remains a challenge and we continue reflecting on that".