european central bank : press conference - introductory statement introductory statement by mr willem f duisenberg, president of the european central bank and mr lucas papademos, vice - president of the european central bank, at the press conference held in frankfurt, 10 july 2003. * * * ladies and gentlemen, the vice - president and i will now report on the outcome of today ’ s meeting of the governing council of the ecb, which was also attended by the president of the ecofin council, mr tremonti. following our regular economic and monetary analysis, we have concluded that the current monetary policy stance is appropriate in view of the favourable outlook for price stability over the medium term. accordingly, we have decided to leave the key ecb interest rates unchanged. interest rates in the euro area are low by historical standards, both in nominal and real terms, thus lending support to economic activity and helping to safeguard against downside risks to economic growth. the governing council will continue to monitor carefully all factors that might affect this assessment. allow me to explain our assessment in detail. in the context of our economic analysis, the latest data and information continue to suggest that economic growth in the euro area remained subdued in the second quarter of the year, after virtually stagnating in the first quarter. the indicators available broadly point to a stabilisation of activity but there are no signs as yet of an underlying strengthening in production and confidence. at the same time, financial market developments seem to reflect a somewhat more optimistic assessment of the economic outlook both inside and outside the euro area. on the whole, we continue to expect a gradual strengthening of economic activity in the euro area. this should be supported by lower inflation and thus higher real disposable income, the low level of interest rates, and a recovery in external demand for euro area goods and services. this assessment is in line with all available forecasts and projections. nevertheless, downside risks to this main scenario are still relevant. while concerns over the sars virus have faded, there are risks relating in particular to the accumulation of macroeconomic imbalances outside the euro area and to the extent of the adjustment still needed in the euro area corporate sector to enhance productivity and profitability. turning to price developments, the outlook over the medium term remains favourable. for the remainder of this year, annual hicp inflation rates are expected to fluctuate around the current level of 2 %, the rate recently estimated by eurostat for june. in early 2004

jean - claude trichet : the european economy - current situation, prospects, challenges speech by mr jean - claude trichet, president of the european central bank, at the “ forum economique international des ameriques ” conference de montreal, montreal, 30 may 2005. * * * mr prime minister, mr mayor, mr president, ladies and gentlemen, it is with great pleasure that i have come to attend the debate and discussion at the international economic forum of the americas / montreal conference, and more especially to address you today. the issue chosen for the forum this year, “ success at a time of turbulence ”, is especially relevant in a world beset by constant economic, financial and technological change. so i would like today to share the european experience with you. allow me first of all to discuss the recent development of economic activity in the euro area, the better to underscore the prospects and to describe the challenges to be faced if europe is to make its own contribution to the growth of a world undergoing in - depth transformation and thus tending to be turbulent. the economy of the euro area : a stable macroeconomic situation, but economic dynamism that requires further stimulation since its establishment over six years ago, economic and monetary union has helped to provide a stable macroeconomic environment. over the past few years, the annual inflation rate in the euro area has remained slightly higher than our own definition of price stability, that is a rise in prices of less than 2 % and close to 2 %. yet this situation is more a reflection of temporary shocks linked in particular to the trend in the price of crude oil, than to any underlying inflationary trend, which remains generally moderate today. inflation expectations have remained anchored at under 2 %, in line with our definition of price stability. the fact that the run of oil price hikes has not jeopardised the stability of inflation expectations is no mere coincidence. it is a mark of success, showing the high credibility level of the young european central bank, which has proven capable of convincingly providing businessmen in an economic area with a population of some 306 million, with a stable anchorage point for their price expectations. thus, as long as inflation and inflation expectations remain solidly anchored to levels compatible with price stability, monetary policy will make a crucial contribution to economic growth by fostering an exceptionally low interest level on the short, medium and long - term markets, and by creating an economic environment that entails minimal distortion and that helps businessmen to