jean - claude trichet : testimony before the committee on economic and monetary affairs of the european parliament introductory statement by mr jean - claude trichet, president of the european central bank, before the committee on economic and monetary affairs of the european parliament, brussels, 1 december 2003. * * * it is my pleasure to appear before your committee for the first time in my capacity as president of the ecb. i would like to tell you that i was very impressed by our last encounter here and i thank your committee and parliament for the confidence expressed by giving your approval to my appointment. i look forward to continuing our regular dialogue in the same fruitful and constructive spirit that was dear to my predecessor wim duisenberg, to whose achievements i wish to again pay tribute on this occasion. i shall begin my first report to you with our assessment of economic and monetary developments, before turning to another issue of topical importance, namely the draft eu constitution. i should like to conclude my statement by briefly addressing the international role of the euro. 1. economic and monetary developments at the time of mr duisenberg ’ s last testimony in september, we noted that economic activity had been very weak in the first half of 2003. at the same time, early signs of a recovery were emerging. since then, data have confirmed our main scenario, which is one of a gradual improvement in economic activity starting in the second half of this year. eurostat has provisionally estimated that quarterly real gdp growth was 0. 4 % in the third quarter of the year. there are, increasingly, reasons to expect the gradual economic recovery in the euro area to broaden and strengthen in the course of 2004. recent data show that the recovery of the world economy is clearly making progress. the expansion of global trade and economic activity should support euro area exports. on the domestic side, recent survey data continue to point towards a further improvement in confidence. the conditions for investment are also improving as a result of firms ’ continued adjustment efforts to enhance productivity and profitability. financing conditions are generally favourable, not least due to the low level of interest rates. finally, terms - of - trade effects stemming from the past appreciation of the euro should also positively affect real disposable income and thus facilitate a pick - up in consumption growth. developments in financial markets are broadly consistent with the overall picture of a gradual resumption of economic growth. as compared with a few months ago, downside risks to the main scenario of a gradual recovery

by mr draghi and a handful of ecb executive board members ; it came about with the agreement of the large majority of the governing council, on which all national central banks governors in the euro area have a seat. i would never have imagined that the euro area could break up, as almost happened in 2012. nor did i think it possible that the ecb would have to print more than an additional €1. 5 trillion ( i. e. €1, 500, 000, 000, 000 ), and pump it into the economy in order to respect its mandate. the ecb has acted resolutely but the story is not over yet. in order to emerge from the crisis, it is crucial that the other authorities also do their homework. it is not up to monetary policymakers to resolve structural problems. bis central bankers ’ speeches