NEW Monetary dialogue with Mario DRAGHI, President of the European Central Bank : - MEPs debate

Type: News   Reference: 94515   Duration: 00:05:08  Lieu: Brussels, Belgium - European Parliament
End production: 23/09/2013   First transmission: 23/09/2013
For the very first time, the revised Stability and Growth Pact rules (the two-pack) will apply this autumn to member states' draft budgets for 2014. Member states have until the end of this month to submit the first version of their draft budgets for 2014 to the European Commission for scrutiny. Under the revised SGP rules, they must then formally notify the Commission of their draft finance law by 15 October. During the debate with the ECB President, MEP's underlined the need to review the implications of the recent monetary policy decisions and the consequences of the austerity policy on the growing unemployment rate.

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00:00:00 Title 00:00:05
00:00:05 Exterior view of the EP, Brussels 00:00:05
00:00:10 SOUNDBITE(French): Jean-Paul GAUZÈS (EPP,FR) Can I ask you about the exact time frame of the implementation of the setting up of the supervisory board , giving the fact that thins vital , the banking union need actually to become a practical reality. 00:00:12
00:00:22 SOUNBITE (English) Mario DRAGHI, ECB President There are four key areas where this significant progress has been made: The 1st key area is the development of the supervisory manual; the second important area is the supervisory reporting; the 3rd development of the SSM framework regulation; the 4th is the preparatory work to date on the comprehensive assessment , including balance sheet assessment., when all banks supervise directly, about. 180 groups covering 85% of the euro area bank assets. 00:00:48
00:01:10 SOUNBITE (Portuguese) Elisa FERREIRA (S&D, PT) The ECB is also part of the Troika, this is a very difficultly model. In the case of Portugal, we followed everything that has been recommended, and we ended up with a recession, which was twice as bad of what was forecast, with an unprecedented rate of unemployment. The debt was a huge proportion of GDP. Sovereign debt is still of a rate above 7%. Signs of recovery are still weak and slow... 00:00:44
00:01:54 SOUNBITE (English) Mario DRAGHI, ECB President Fiscal consolidation have to be growth friendly, which means lower expenditure, less use of taxation.. There should be full implementation of structural reforms.. Some countries must do structural reform mostly on the real of product and services market, and competitions, other countries need to do it 1st in the liberal market, the continuation of structural reforms is absolutely essential. 00:00:38
00:02:32 SOUNBITE (French) Sylvie GOULARD (ALDE, FR) Do you indent to slowly get our of the Troika ? You said that you will provide technical expertise. provide technical advise, advice provided as part of the troika. And you said that is Eurogroupe that's takes decisions, and this is an important issue for citizens. How decides on measures taken by the troika? 00:00:26
00:02:58 SOUNBITE (English) Mario DRAGHI, ECB President We view this role as lasting as this crises goes on. Certainly in the long terms we don's view EBC as part of the troika. So that is the answer. 00:00:21
00:03:19 SOUNBITE (English) Mario DRAGHI, ECB President The troika doesn't' decide. Is the Eurogroup that decides to finance the programs. The programs are being financed using the national budgets , from national contributions. is national tax payers that are been asked to pay taxes for these programs. So is the Eurogroup, the political body that decides on the programs. The Troika has -at least as far as the ECB is concerned - and advisory role. 00:00:29
00:03:48 SOUNBITE (English) Sylvie GOULARD (ALDE, FR): When I discus with the group of children no one is responsible for the mess in the house . This is a bit the same feeling. 00:00:11
00:03:59 SOUNBITE (English) Mario DRAGHI, ECB President I like you are calling the Eurogroup a group of children, they will be flattered. 00:00:06
00:04:05 SOUNBITE (English) , Derk Jan EPPINK (ECR, BE ) Can you comment on the recommendation of the ECB money market contact group , and on Mr Liikanen statement : will the ECB lunch a new round of LTRO (Long Term Refinancing Operations) loans, and under what circumstances? 00:00:13
00:04:18 SOUNBITE (English) Mario DRAGHI, ECB President On LTRO: The overall total voluntary repayments in both 3 years LTRO's as of September 10th as stood 3031 Billion euro, that correspond to 63,5% of the net liquidity injections at the beginning. 00:00:21
00:04:39 SOUNBITE (English) Mario DRAGHI, ECB President This is on one hand a good sign, because its shows that banks are less depended on the ECB financing., and they can actually finance themselves ether trough the market, or via deposits, or exchanging credit lines between each other. On the other hand, markets watch this quantity called excess liquidity and may react increasing short time money market rates. 00:00:29
00:05:08 END 00:00:00
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