unlimited loans to banks? trichet : it is our doctrine since the beginning of the turbulence that interest rates on the one hand and non - standard measures on the other hand are decoupled. we design the monetary policy stance ; we decide interest rates to deliver price stability in the medium term. non - standard measures are there to help restoring a better functioning of monetary policy transmission. we are disconnecting both measures. we can move interest rates on the one hand, and we can move non - standard measures on the other hand independently. wsj : euro member states are working on comprehensive measures to address the debt crisis. what elements should be in that package? trichet : these decisions are the responsibility of governments. we have in particular a very strong message, which is that we need a “ quantum leap ” in the strengthening of governance of economic and fiscal policies. wsj : when you spoke of a quantum leap last year, you referred to quasi - automatic sanctions on excessive deficits. governments so far haven ’ t come along. what makes you optimistic that you can still get your point of view adopted by governments? trichet : there are a number of elements that are important : the reinforcement of sanctions ; the reinforcement of the independent diagnosis that would be made by commission. it ’ s a set of quantum leaps, including the quasi - automaticity of the start of the corrective procedures and of the sanctions, which in our view is extremely important. governance is now discussed by the european council and the european parliament. the parliament has in the past always demonstrated a remarkable capacity to capture what is essential for europe. so, the involvement of the parliament is very important. wsj : last year, governments made a watery compromise on sanctions, weaker than the european commission ’ s proposals. should governments rethink that compromise? trichet : even the initial proposals from the commission seemed to us too timid. our position has not changed. wsj : you have called for maximum flexibility for the european financial stability facility. there is discussion whether efsf should take over all or part of the bond buying program from the ecb. if that were to happen, would you be relieved? bis central bankers ’ speeches trichet : as i said, they have to improve the stabilization fund in both quality and quantity. by quality i mean having a tool that is as flexible as possible. wsj : you have said bond purchases are meant to ensure the transmission of monetary policy

finance. the idea is to leverage public money to rebalance risks and instil confidence so as to draw in private capital. this should enlarge the pool of available 1 / 2 bis - central bankers'speeches capital while allowing projects to tap the innovation, risk management expertise, entrepreneurship, and market development capabilities of the private sector. as asia's leading international financial centre and green finance hub, hong kong is very well positioned to channel the needed investment to sustainable projects in asia and the belt and road countries. we have one of the world's most active equity markets and asia's largest international bond market. in particular, hong kong captured more than one - third of the asian green and sustainable bond issuance last year. nearly 200 esg funds are authorised with the sfc, an increase of 55 % just within a year. meanwhile, we are taking steps to support the further growth of our sustainable finance ecosystem through a mix of regulation and financial incentives and leading by example in terms of the exchange fund's investments. policy initiatives aside, we recognise that communication and in - person contact are equally important. we set up the infrastructure financing facilitation office ( iffo ) back in 2016, with close to 100 partners now, to provide a platform for practitioners and investors to share experience and best practices. recently, we hosted two roundtables with leaders from various financial institutions to discuss ways to bolster climate financing. more events will be planned for the rest of this year. in addition to those events, we have organised delegations to visit the belt and road countries, including saudi arabia and the united arab emirates, to promote dialogue and cooperation, especially in the area of green and sustainability development. notwithstanding the effort that we have put in, a lot more still needs to be done to support the climate transition. i look forward to hearing the insights and ideas from our speakers and panellists at our upcoming discussion. thank you. 2 / 2 bis - central bankers'speeches