benoit cœure : interview in le figaro interview with mr benoit cœure, member of the executive board of the european central bank, in le figaro, conducted by ms alexandrine bouilhet on 4 april 2014. * * * le figaro : isn ’ t the strong growth seen in the financial markets out of touch with economic reality? benoit cœure : markets are anticipating economic recovery. that is a good sign, and we think they are right! it is not a bad thing in itself to anticipate a recovery! we at the ecb believe that the recovery is already underway, albeit a gradual and fragile one, and so we want to accompany it with low, or even lower, interest rates for a prolonged period. is this strong growth not already creating bubbles? in our opinion, no – not in the euro area. but, in a period of very low interest rates, there is a need for vigilance. if this risk were to materialise, supervisory authorities in the member states have new “ macro - prudential ” instruments at their disposal, not to mention the other macroeconomic measures. is the ecb really ready to start quantitative easing ( qe )? yes, the governing council is unanimous in its commitment to using unconventional instruments, including qe, if the current period of low inflation extends for longer than expected. we do not consider that necessary at present, because the low level of inflation is partly due to temporary factors and we believe in the recovery : inflation should therefore increase. but we will continue to monitor developments very closely and act if required. how can qe help to increase lending? that is the question! even if qe means there is more liquidity on banks ’ balance sheets, there is no guarantee of that increasing lending. the ecb cannot be a substitute for putting the banking sector back on a sound footing. the review of banks ’ balance sheets that we are carrying out in 2014 will help. qe in the european context would inevitably be different to the approach taken in the united states. on that issue, mario draghi has weakened the euro. why? market participants have now fully understood that the exchange rate is not an objective of our monetary policy, but it is nevertheless an important variable in our decision - making because of its influence on price developments. in a period of low inflation, the effects of exchange rate developments are closely monitored. what should be done to weaken the euro further? another reason

tips allows individuals and firms to transfer money by settling electronic payments in less than ten seconds. 3 / 4 bis central bankers'speeches but, for private risk - sharing and market integration to be effective, they need to be supported by policies on other fronts. fully applying the budgetary rules and coordinating economic policies more effectively remain vital to strengthen the resilience of the euro area and create the confidence among member states that is needed to proceed towards further integration. in parallel to this, the institutional foundations of emu need to be fortified. on the one hand, it is important to strengthen the governance and operational capacity of the european stability mechanism while fully respecting eu law. this will better protect euro area countries against severe shocks. on the other hand, establishing a budgetary instrument that supports convergence and competitiveness would help to strengthen the resilience of the euro area as a whole, as well as the resilience of each of its member countries. conclusions let me conclude. as we are approaching the end of this parliamentary term, let me take the opportunity to thank this committee for the very constructive relationship our two institutions have established over the past five years. these have not been easy times, and the public has rightly asked for effective and tangible responses to economic and financial challenges. you have played a vital role in relaying those expectations and in ensuring that the ecb ’ s accountability – the necessary counterpart of its independence – was effectively discharged. moreover, as co - legislators you drafted and adopted the reforms that made it possible to have a stronger union today. you know better than i that reform is a continuous endeavour and that the benefits of these efforts are not always easy to communicate. still, the december eurobarometer showed that support for the euro rose to 75 % in 2018. this provides a solid basis on which to build and advance along the path towards a deeper and more complete emu. i am now at your disposal for questions. 4 / 4 bis central bankers'speeches