Jean-Claude Trichet: Concluding remarks for the Euro-Mediterranean Seminar
Concluding remarks by Mr Jean-Claude Trichet, President of the European Central Bank, at the
Euro-Mediterranean Seminar, Eurosystem and Mediterranean country national central banks, Naples,
14-15 January 2004.
* * *
Distinguished guests, ladies and gentlemen,
To conclude today's seminar, may I say what a pleasure it has been for me to be here among such
distinguished participants. This seminar has brought together governors and high-level officials from
the central banks of Algeria, Cyprus, Egypt, Israel, Jordan, Lebanon, Libya, Malta, Morocco, the
Palestinian National Authority, Tunisia, Turkey and the Eurosystem, namely the European Central
Bank and the national central banks of the euro area.
Let me tell you how impressed I have been to feel, together with all participants in this seminar, the
presence of history. And not only recent history, but also ancient history. I was particularly impressed
by the various geographic maps which were presented during the course of this seminar: maps going
back to Roman times, illustrating the intensity of trade relations 2,000 years ago. I was also struck by
how often historians were quoted during the course of this meeting, in particular Fernand Braudel, who
had a very deep understanding of the historical development of the Mediterranean region in the period
of Philippe II. And so when paving the way for enhancing and improving the future relationship
between the Eurosystem and Mediterranean central banks, it is vital to take full account of all the close
links that have developed among all of us over time.
It was noted that our seminar was living proof that the so-called "clash of civilisations" theory is a
totally wrong and inappropriate concept; an absurd theory whose roots were probably to be found in
times of economic hardship. One of us noted that another colloquium is being held this week by
UNESCO entitled "The clash of civilisations will not happen". We all share that view and consider that
we have all worked as efficiently as possible to create the environment of monetary and financial
stability that is necessary for growth and job creation, which in turn helps to combat poverty and
unemployment on all the shores of the Mediterranean.
Let me tell you that, for me personally, it was very moving to hear such remarkable speeches on the
same issues from the central banks of Morocco and Spain, when one thinks of the historical links
between the two countries; from Greece and Israel, which have both been at the roots of European
culture; to hear the central bank of Tunisia, when thinking of the Carthaginian Empire; to hear the
central banks of Turkey, Lebanon, the Palestinian Monetary Authority, Algeria, Cyprus, Malta, Jordan,
Italy and France, to mention just some of the really remarkable contributions we had the privilege to
listen to today.
I cannot help thinking that there is something in the European Union experience which could be of
great interest to the non-European Union part of the Mediterranean area. Indeed, that experience
could be of interest to others throughout the world, particularly where one has to cope with extremely
difficult issues that are triggering acute conflicts of interest and that are impossible to solve by
traditional methods. Jean Monnet had the wonderful idea of pooling conflicting interests and
encouraging all partners to make it their common interest to jointly manage this new body of pooled
interests, in the best possible way, through an independent multilateral institution. In this respect, I
have found very interesting suggestions in Jean Monnet's memoirs as regards the eastern part of the
Mediterranean.
* * *
As you know, the ECB and the Eurosystem are young entities, but there is a long history of relations
with monetary authorities in this region. Bilateral relations between the central banks of the euro area
- for example the Banca d'Italia, our host and co-organiser of this seminar, which I would like to thank
most warmly for the remarkable organisation of the present meeting, as well as of the central banks of
the euro area Mediterranean countries - and national central banks on the southern and eastern
shores of the Mediterranean have always been close.
What is new is that central banks of the region have now met in a multilateral framework, opening the
way for a central banking dimension within the Euro-Mediterranean process, the so-called Barcelona
process.
Today we have witnessed an extremely fruitful exchange of views on three topical issues: trade and
financial links between the euro area and other countries around the Mediterranean; exchange rate
regimes in the region; and the state of the banking and financial sector.
This candid, very professional, frank and exceptionally interesting exchange of views was particularly
rich and useful from both a practical and operational standpoint. Among the provisional conclusions
that I am tempted to draw after hearing the discussions, I would mention the following:
• We have a very large consensus on the importance of strengthening all links between our
economies, with particular emphasis on trade and foreign direct investment as well as the
financial sectors relationship. The idea of having an appropriate set of indicators to measure
the progress in this domain was approved unanimously. Equally, we have a very large
consensus on the need to run sound and wise monetary policies, to benefit from equally
sound fiscal policies and to rely on good governance in all sectors of the economy.
• On exchange rate regimes, the exchange of views was particularly stimulating due to the
great variety of experiences and regimes represented here. There was a large consensus on
the fact that, whatever regime is adopted, success relies very much on the quality of the
policies pursued, in particular monetary policy, fiscal policy and structural policies.
• On the banking system, we again had an extremely fruitful exchange of views. Good
governance and solidity of the banking sector were unanimously considered as a
fundamental precondition for sound and sustainable growth in all economies considered.
Central banks have a fundamental role to play in ensuring as much monetary stability and
financial stability as possible. The Basel II accord was also mentioned and it was stressed
that this is designed for all economies in the world.
* * *
Not only does today's seminar mark the end of a preparatory process that started a couple of years
ago, but I am convinced that it also marks the start of a new multilateral dialogue between central
banks in the region. While the mechanisms that will shape this process in the coming years still need
some fine-tuning, with the necessary adaptations they may well mirror the ways in which the
Eurosystem's relations have developed with other areas of the world, like central and eastern Europe,
Latin America and East Asia. These relations are based on regular multilateral meetings at both the
policy and expert levels.
Pursuant to such a scheme, high-level seminars at the policy level, co-organised by the ECB and a
Eurosystem national central bank and held in different locations could be repeated every year.
Meanwhile, expert-level workshops on different topics could also be held every year, as appropriate
preparation for the high-level seminars, possibly beginning at the end of 2004. These events should
be prepared by pooling knowledge on the economies of the region and encouraging contacts between
the research departments of the Mediterranean region's central banks.
Let me also mention that in recent years there has been significant demand for technical assistance
from central banks in Mediterranean countries. Several Eurosystem national central banks have
responded with substantial programmes. To the extent that a coordinated effort by all Eurosystem
national central banks may help to respond to further requests, the ECB will activate its task force of
Eurosystem technical assistance experts to that end.
* * *
Let me conclude by thanking once again Governor Fazio and the staff of the Banca d'Italia for their
generous contribution and precious cooperation in organising this seminar. The impressive
surroundings of the Capodimonte Royal Palace have certainly provided a stunning backdrop to our
meeting. Moreover, I would like to thank His Eminence, Cardinal Giordano of Naples, the Minister for
European Affairs, Mr Buttiglione, Members of the Italian Parliament, the President of the Campania
Region Mr Bassolino, Mayoress of Naples Ms. Russo Jervolino and all our distinguished guests for
their participation at the opening session.
Finally, I would like to thank all participants, and in particular my colleagues from our Mediterranean
partner countries, for coming to Naples and discussing with us issues of common interest. We all know
that parts of this region are not free of tensions. Thus, your participation in today's meeting is a sign of
professionalism to which I would like to pay particular tribute.
Thank you.