Monetary dialogue with Mario DRAGHI, President of the European Central Bank:
- extracts form the statement by Mario DRAGHI, ECB President
EP Committee on Economic and Monetary Affairs
Lieu: Brussels, Belgium - European Parliament
End production: 08/07/2013 First transmission: 08/07/2013
MEPs of the Committee on Economic and Monetary Affairs held a meeting with European Central Bank President Mario DRAGHI. Within the framework of the Monetary Dialogue, Mr. DRAGHI presented the ECB's perspective on Economic and Monetary Developments. Mr. DRAGHI stressed out that is essential for euro area countries to not unravel their efforts to reduce government budget deficits. He pointed out that according to economic analysis, price developments should remain in line with price stability over the medium term, a perspective confirmed by a cross-check with the signals from the monetary analysis. Regarding fiscal consolidation and structural reforms, the progress made so far was welcomed and governments were encouraged to continue with determined efforts.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior shot of the European Parliament, Brussels
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "Despite this progress, the euro area still faces considerable challenges. The economy is still weak, financial fragmentation remains, this challenges the very concept of the single market. Small and medium size enterprises can find it difficult to access credit, particularly in countries under strain. "
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "Economic activity in the euro area contracted for a 6th consecutive quarter in the first quarter of 2013. Labour market conditions remain still weak, recent confidence indicators based on survey data have shown some further improvement, albeit from low level."
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "The recent tightening of global money and financial market conditions and related uncertainties may have the potential to negatively affect economic conditions. Other downside risk includes the possibility of weaker than expected domestic and global demand and slow or insufficient implementation of structural reforms in euro area countries. Annual inflation in the euro area has continued to moderate, falling from 2.5% in 2012 to 1.6% in June."
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "Difficult access to credit by SMEs is an issue for investment and growth in parts of the euro area. Especially in countries that are under strain. In Spain, for instance, the interest rate on small loans is almost 3.2% greater that interest rates on large loans. In France, by contrast, the difference is only 1%. Given their high dependence on bank credits, SMEs in countries under strain suffer particularly from financial fragmentation."
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "The stakes are too high to afford undue delays. To complete such an essential project, resolute action has to be taken in the months to come and this Parliament has a key role to play."
||SOUNDBITE (English) Mario DRAGHI, President of the European Central Bank: "Until the regulation of the single supervisory mechanism is adopted, we at ECB cannot formally take decisions. In this context it is my understanding that the supervisory accountability arranges with the parliament in line with the ESSM regulation are nearing finalisation on the basis of reconstructive stance by both parties."
||Cutaway shots with members in the audience (10 shots)