kfajdsl/voxpopuli huggingface dataset:
the package will strengthen the regulatory architecture reduce risks in the banking sector and increase financial stability.
banks and financial institutions are not the only ones that have to prepare for an operating environment in a state of
and the role of the ecb's monetary policy. second i will discuss the state of the financial sector and the measures needed to further strengthen its resilience.
in addition a number of other factors have supported investment.
whose implications for the medium term outlook for price stability require close monitoring.
it is also crucial if the public is to understand those policies and play an active role in particular via their representatives in parliament.
after increasing to two in early two thousand and seventeen due to a rise in energy prices headline inflation has fluctuated since may last year between.
in parallel we will reinvest the principal payments from maturing securities purchased under the asset purchase programme for an extended period of time after the end of those purchases and in any case for as long as necessary.
in particular ecb banking supervision plays a key role in ensuring the safety and soundness of banks.
for dealing with frictions in the transition from the current situation to the new eventual equilibrium especially in the event that no transitional agreement is reached between the eu and the united kingdom.
we pay close attention to parliament's resolution on our annual report and we will respond in detail to the issues you raise there when we publish our ecb annual report
these include higher demand for euro area exports rising corporate profitability and an increasing use of installed productive capacity.
on the back of improved economic conditions the financial stability situation in the euro area has also continued to evolve positively.
the efforts we have made in recent years to strengthen prudential regulation and supervision above all with the establishment of the banking union have certainly played a role in protecting financial stability.
we expect our key interest rates to remain at their present levels for an extended period of time and well past the horizon of our net asset purchases.
it enhances the banks' resilience through strengthened prudential regulation.
two thousand and thirteen employment has now reached its highest level since the introduction of the euro.
both factors have therefore strengthened the solidity of the european banking sector.
at the same time new technology presents an opportunity for banks to increase the value added and the cost efficiency of their services.
it will introduce into union law new internationally agreed standards such as the leverage ratio requirement which will restrict the build up of excessive leverage in the banking system and the standard on total loss absorbing capacity otherwise known as tlac which will strengthen the resolution framework. as co legislators you play a vital role in this
the number of people employed in the euro area has also increased by around.
by supporting the economic recovery our monetary policy measures have had a positive impact on the credit quality of banks' loans to businesses and households and have helped banks further to reduce their provisioning costs.
moreover the high stock of non performing loans needs to be further reduced and any future build up needs to be avoided.
five measures of underlying inflation which exclude the most volatile components remained subdued and have yet to show convincing signs of a sustained upward trend. also new headwinds have arisen from the recent volatility in the exchange rate
our forward guidance continues to provide a stable framework for our monetary policy stance and its outlook.
first finalising the banking reform package is crucial.
second it is important to complete the architecture of the banking union by putting in place the agreed common backstop to the single resolution fund and by establishing a european deposit insurance scheme
area. the improved health of the banking sector coupled with our credit easing measures has brought about a marked improvement in the transmission process as shown by the reduced heterogeneity of bank lending rates across countries and by the improved borrowing conditions for
the resolution mentions for instance the growing role of fintech companies.
accordingly we see positive growth in over eighty five of the sectors in the euro area economy compared with a historical average of.
indeed overcapacity and cost inefficiencies continue to weigh on bank profitability in certain banking markets.
flux. policymakers too at national and european level have to make sure that the regulatory framework is fit and ready to safeguard the resilience of the financial sector in the face of new challenges.
seventy five employment growth has recently strengthened as well in all the main sectors namely industry construction and market services.
in line with that guidance monetary policy will evolve in a fully data dependent and time consistent manner. let me also say a few words about the financial sector.
go. additional efforts by banks supervisors regulators and legislators are needed to create an environment in which non performing loans can be effectively managed and efficiently disposed
together independence and accountability underpin our effectiveness and our legitimacy. in my remarks today i will focus on two particular issues that have been raised in the draft resolution. first i will elaborate on economic developments in the euro area
small and medium sized enterprises in particular have benefited from our policy measures.
overall while we can be more confident about the path of inflation patience and persistence with regard to monetary policy are still warranted for underlying inflation pressures to build up and inflation to converge durably towards our objective.
although credit flows have been recovering growth rates are still far below anything we saw before the crisis and on the low side of the range of growth rates historically seen during recoveries.
the backstop should ensure that sufficient funding is available at all times to guarantee orderly resolutions.
as more people find jobs household incomes rise.
the draft resolution points in particular to the risks stemming from possible asset bubbles.
the economic expansion is broad based.
while our confidence that inflation will converge towards our aim of below but close to two has strengthened we cannot yet declare victory on this front.
accordingly our net asset purchase programme running at a monthly pace of eur thirty billion will continue until september two thousand and eighteen or beyond if necessary and in any case until the governing council sees a sustained adjustment in the path of inflation consistent with its inflation aim.
area. also on the macro prudential side we see national authorities in close cooperation with the ecb being very active in further mitigating the emergence of possible systemic risks especially in respect of residential real estate developments.
we have addressed financial fragmentation and supported the economy enabling inflation gradually to converge towards our objective.
your draft resolution points out that monetary policy has played a key role in this recovery process.
we are still concerned about the risks of the persisting low interest rates for the insurance and pension sectors as well as for private savings.
finally i would like to thank the rapporteur jons fernndez for his work on this report and we are sending with the debate today and with its adoption tomorrow hopefully with a large majority a clear signal to the ecb on the parliament's position on your activity in the year.
i agree with president draghi when he says that member states have to increase their efforts in implementing growth enhancing structural reforms while at the same time maintaining sound and responsible budgets to support the economic recovery.
two thousand and sixteen this is why the ongoing tapering is necessary for the economy to get back on track and to be self sustaining. unconventional monetary policy tools have reached their limits.
this is an important element of the european parliament's report with regard to the ecb's activity for.
unemployment has continued to decline and has reached the lowest level since january;
however the positive economic outlook still has to translate into higher public and private investments and we still have to progress on reaching our inflation objective.
right now digital currencies are not subject to a specific supervisory
brexit. we are not party to these negotiations but we are certainly monitoring their evolution and clearly i agree that much depends on these negotiations and possible arrangements.
let me first say that we are not observing a systemically relevant holding of digital currencies by supervised institutions by banks in other
so in fact if you look at the stock you will see that as far as german bonds are concerned we are above the capital key for that country.
certainly transitional arrangements along the lines of the december european council guidelines could be useful to smooth out the brexit process but as we all know the materialisation of the transition period is still exposed to political uncertainty and that will remain for some
questions. thank you.
of course then we had to deviate from the capital key.
come. on financial supervision i welcome the review of the european system of financial supervision including changes to the european supervisory authorities.
i just wish to reiterate that our measures are proving effective but at the same time we are aware of potential side effects and we have to differentiate between the various ways in which they affect economic actors.
also in some large cities and in some countries real estate prices have increased at a faster pace than household incomes.
i am listing all these factors because they are explanations of why the nominal wage growth response is going to be lower than we had expected.
however such a policy also supports economic expansion and this bolsters employment income returns on investment and tax revenues.
finally yields in the euro area corporate bond markets especially for some of the lower rated issues have started to look exceptionally low by historical standards but what are we going to do? are we going to change monetary policy because of these side effects which are not by the way systemic?
assets. virtual currencies are subject to high volatility and their prices are entirely speculative.
we do not favour certain countries over others in the implementation of our programme.
beyond the effect on the liability side it is important to see what happens on the asset side. our monetary policy has had a beneficial impact on this side of the equation as the value of the investment portfolio has increased.
there is no one specific country that has benefited most from our monetary policy.
since the end of may two thousand and fourteen lending rates for households and non financial firms have declined significantly.
private sectors across countries and sectors saved billions on interest rate payments to banks; and purchasers of houses could have access to mortgages with much lower interest rates than at any time in the past.
banks should measure the risk of any holdings of digital currencies in their portfolio accordingly.
seven five million jobs over three and a half years.
there is one thing i said in the introductory statement which is very important during the crisis we observed widely differing lending rates by banks in different parts of the euro area but this difference has now shrunk and rates are very close nowadays as are growth rates by the way.
at a much more satisfactory rate than in the past.
public sectors in all countries saved billions on interest rate payments;
meeting. there was none of that a few years
it therefore benefits households in their capacity as workers entrepreneurs investors borrowers and taxpayers.
public. we have continuously assessed where we need to further strengthen our transparency framework and we have demonstrated our commitment improving our framework as necessary.
the overall stock of euro system holdings is the relevant metric for any assessment of the programme and not the recent purchase flows.
receive it. i think i have gone through most of your
there are no signs of general asset price misalignments in the euro area but some segments do need close monitoring and one of them is the prime commercial real estate market where we actually see stretched valuations.
for example for individual savers an accommodative monetary policy means that they accrue fewer nominal returns on their savings.
sector. now a word about
i apologise in advance that given the short time i have i cannot comment on each and every statement but let me touch on some of the issues that you raised.
this has been shown by the way in several studies.
our purchases are guided by the ecb's capital key which takes into account gdp and population.
tasks. the ombudsman has also confirmed that the ecb has a robust system of safeguards in place to manage its contacts with the financial
it is very encouraging for our work that you stress how our measures have contributed to the recovery and to financial stability.
the gradual recovery in loan growth is continuing.
of course we always prepare for any eventuality and at the same time we are assessing the direction the probability and the potential impact of risk but the bottom line is that either this transition is well managed and there will not be substantial risks or it is not and the risks will be
ago. since two thousand and fifteen the executive board members as well as the chair of the supervisory board publish their diaries covering professional meetings with external
words. actually the credit institutions established in the european union are showing a limited appetite for digital currencies like bitcoin notwithstanding the high level of public
i also recognise the very significant impact that you have made president draghi in terms of the bond buying exercise that you directed with the governing council and that sends out a strong message of trying to reflate the economy at a time when we needed funding.
we look at the job numbers we look at gdp growth especially in the last three years and we look at the emerging investment which is taking place.
my issue is to ask you once again to continue a dialogue with policymakers and member states and especially go to member state parliaments.
i hope you will have an opportunity to visit the irish oireachtas and possibly the finance committee between now and the end of your mandate in october.
when one looks back at the last ten years significant progress has been made in getting the eurozone economy to a much better place.
we recognise that it will come to an end at some point it will be tapered but i think there are issues still and i have raised them before surrounding how much each member state is asked to give in terms of the national outstanding amount.
getting inflation close to two is not just important in terms of reflating the eurozone economy but it is also important in helping to reduce debt piles which are very significant in countries that went through a bailout programme such as my own so i recognise that progress.
i want to thank my colleague for a very good question.
i am not going to preclude anyone but i am simply saying that it is important that that question of objectivity independence and technical competence are the key characteristics for us all to consider before a decision is made.
so we do have a lot of respect for the independent nature of the bank but at the same time we of course need some democratic scrutiny and i therefore appreciate that mr draghi is here with us today.
in the report we have here in front of us i think we have been able to strike a fairly good balance with a balanced tone. mr draghi and the ecb have done a fairly good job and they have been playing a very important role in addressing the crisis.
to increase the resilience of the system.
i think we are heading towards more normal interest rates.
that would be a great improvement.
while the activities of central banks have patched up the system many of the fundamental design flaws have not been addressed.
there is still an urgent need for deep structural reform of the euro area banking system as institutions remain too big or too interconnected to fail.
my group remains concerned that this point is not being adequately addressed in the report.
in our view the ecb remains a provider of implicit public subsidies to these institutions that represent a fundamental threat to the stability and efficient allocation of capital in the eu and internationally.
as greens we are also determined to ensure that the ecb's activities are consistent with our paris climate commitments and that the asset purchase programme does not undermine our rapid transition away from fossil fuels.
do you think it's a positive development that we have this sort of candidates?
mr president afghanistan's new law effectively legalising rape in marriage and also child marriage for shia women threatens to take the country back to the medieval days of taliban rule.
certainly this law makes it harder to distinguish in terms of modernity and respect for women's rights between the elected afghan government and the taliban terrorists against whom it is fighting.
the law also makes it hard to justify the international community's massive military and financial assistance to afghanistan.
i feel very uneasy about soldiers from my country the united kingdom dying to defend a government that panders too much to extremist and obscurantist sentiments. to his credit president karzai has said this law will be repealed but it has taken a great deal of international pressure including this resolution from our parliament to get us to this stage.
also the repeal of this law should not obscure the fact that women in afghanistan continue to suffer lack of schooling injustice and discrimination on a daily basis.
mr president gender responsiveness is a measure of good governance anywhere in the world but even more so in afghanistan after the suffering endured by women for decades there.
there cannot be true peace and recovery in afghanistan without priority being given to respecting the human rights of women.
this shia family law allows marital rape approves child marriage and bans wives from stepping outside their homes without their husbands' permission.
women's human rights and dignity cannot fall victim to pre electoral negotiations with islamic fundamentalists.
the international community present in afghanistan must put much more pressure on president karzai and the afghan authorities to come up with proper laws which respect the human rights of women and policies that are committed to enacting those rights and respect their dignity.
this law is fundamental to ensure that there is freedom of expression and of the media in afghanistan.
without that anything that we are doing in afghanistan is not worth it.
i think there can be no clearer indication of the importance of creating a single market.
where boatbuilders have experienced problems in not having their craft certified and having to get them inspected for individual markets as well as to address environmental and safety issues. just to show you the extent of the reach of this may i quote from a note that i got from the european boating industry
what we have been seeking to obtain as always with single market work is to add value to create that single market that is so crucial for manufacturers.
sometimes people ask why do we need regulations why do we need harmonised regulations for products?
we have also made detailed changes for example about classification of water craft;
they said to me that these obligations increase the safety of operations or bring environmental benefits and put an end to the national variations that fragment the market and force manufacturers to adapt craft for various member states.
i want to thank the commission for being visionary enough to align those regulations with the united states so this is a sign of a global industry emerging.
part of it was because we carried out our own impact assessment on this specific proposal which we presented to the council and they were persuaded by parliament's own impact assessment work to adopt this proposal.
it is interesting that this was an idea that came from my committee and not from the commission but i want to thank the commission for accepting that.
first of all i think it is important to remember how important the manufacturing sector for recreational craft is in total because there are many small businesses involved.
i am indebted to our own library service by the way which has done a very good briefing on this in updating these figures because many jobs are created not just in boatbuilders but also in all the engine and marine manufacturers and of course the people who use the boats as well.
i have great pleasure in presenting this proposal to you.
sometimes we forget that in these small building blocks we are creating a very important economic space a whole european supply chain which is good for consumers good for the environment and is also good for business.
i think what is interesting in this case is that first of all this is a proposal that has a long history as far back as. one thousand nine hundred and ninety four it was updated in two thousand and three and our task this time has been to update it to deal with some of the fragmentation issues that are still there
first of all the environmental performance of engines has been very significant.
i just want to reflect on the fact that we are now firmly in the implementation stage.
i await with interest the commission's latest view on our compromise proposals but i would just like to say that we are keen that parliament should continue to monitor what is going on.
we do not have a specific role in the implementation procedures but it is not satisfactory and i am sure colleagues would agree for us simply to pass legislation and then not see how it works in practice particularly because of the length of time between these amendments.
so i would regard this as being for my committee and for our successor committees something that will be a continuing file to follow.
we have put in specific review provisions particularly as the commissioner says about future enhancements in areas like environmental performance on both emissions and noise.
that is because the specialists in the council the naval architects and specialists do not meet that often but we felt that rather than precipitate a second reading we would send them our first reading and all the data and the impact assessments and then we would let them come to a conclusion and then we would put a final package together.
that was signed during the irish presidency and i particularly want to thank michael klein who was leading that because he was instrumental together with the commission services and my colleagues in getting this agreement.
yet while being a supporter of strengthened relations i am seriously concerned over the deterioration of civil and political rights that we are currently witnessing.
as is the case of many others who are detained under article eighty eight of the penal code which seems to be increasingly used as an instrument to silence those who stand up for human rights.
whilst we should continue to support vietnam i really want to underline it is important that they recognise real steps have to be made in protecting human rights if we are to continue.
the case of nguyen van hoa who was sentenced to seven years in prison simply for informing his fellow citizens about the impact of an environmental disaster afflicting thousands of people is deeply worrying.
i urge the vietnamese authorities to take seriously the pressing calls made by this house today and to review the use of security provisions to crackdown on dissidents to release those who have been detained on that basis and to give unfettered access to the un special rapporteurs on freedom of expression and human rights.