rise in inflation does not give rise to broad - based inflationary pressures over the medium term. strong vigilance is warranted with a view to containing upside risks to price stability. overall, the governing council remains prepared to act in a firm and timely manner to ensure that upside risks to price stability over the medium term do not materialise. the continued firm anchoring of inflation expectations is of the essence. turning to fiscal policies, all governments need to fully implement their fiscal consolidation plans in 2011. where necessary, additional corrective measures must be implemented swiftly to ensure progress in achieving fiscal sustainability. beyond 2011, countries need to specify ambitious and concrete policy measures in their multi - year adjustment programmes, so as to underpin the credibility of their fiscal consolidation targets of ensuring a rapid correction of excessive deficits and returning to a close - to - balance or surplus position. strengthening confidence in the sustainability of public finances is key, as this will reduce interest rate risk premia and improve the conditions for sound and sustainable growth. at the same time, it is crucial that substantial and far - reaching structural reforms be implemented in the euro area to strengthen its growth potential, competitiveness and flexibility. in the case of product markets, policies that enhance competition and innovation should, in particular, be further pursued. on the labour market, the priority must be to enhance wage flexibility and incentives to work, and to remove labour market rigidities. the current sovereign debt crisis in the euro area has reinforced the need for an ambitious reform of the economic governance framework of the euro area. the governing council of the ecb is of the view that the legislative proposals which have been put forward by the european commission go some way to improving economic and budgetary surveillance in the euro area. however, they fall short of the necessary quantum leap in the surveillance of the euro area which is necessary to ensure the smooth functioning of economic and monetary union. as outlined in the ecb ’ s opinion of 17 february 2011 on these proposals, more stringent requirements, more automaticity in the procedures and a clearer focus on the most vulnerable countries with losses in competitiveness are required to ensure that the new framework will indeed be effective in the long run. we are now at your disposal for questions. bis central bankers ’ speeches

european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 3 march 2011. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will now report on the outcome of today ’ s meeting, which was also attended by commissioner rehn. based on its regular economic and monetary analyses, the governing council decided to leave the key ecb interest rates unchanged. the information which has become available since our meeting on 3 february 2011 indicates a rise in inflation, largely reflecting higher commodity prices. the economic analysis indicates that risks to the outlook for price developments are on the upside, while the underlying pace of monetary expansion remains moderate. recent economic data confirm that the underlying momentum of economic activity in the euro area remains positive ; however, uncertainty remains elevated. the current very accommodative stance of monetary policy lends considerable support to economic activity. it is essential that the recent rise in inflation does not give rise to broad - based inflationary pressures over the medium term. strong vigilance is warranted with a view to containing upside risks to price stability. overall, the governing council remains prepared to act in a firm and timely manner to ensure that upside risks to price stability over the medium term do not materialise. the continued firm anchoring of inflation expectations is of the essence. the governing council today also decided to continue conducting its main refinancing operations ( mros ) and the special - term refinancing operations with a maturity of one maintenance period as fixed rate tender procedures with full allotment for as long as necessary, and at least until the end of the sixth maintenance period of 2011 on 12 july 2011. furthermore, the governing council decided to conduct the three - month longer - term refinancing operations ( ltros ) to be allotted on 27 april, 25 may and 29 june 2011 as fixed rate tender procedures with full allotment. the rates in these three - month operations will be fixed at the average rate of the mros over the life of the respective ltro. as we have stated before, the provision of liquidity and the allotment modes will be adjusted as appropriate, taking into account the fact that all the non - standard measures taken during the period of acute financial market tensions are, by construction,