jean - claude trichet : hearing at the economic and monetary affairs committee of the european parliament introductory statement by mr jean - claude trichet, president of the european central bank, brussels, 28 september 2009. * * * dear madam chair, dear members of the committee on economic and monetary affairs, i very much appreciate the opportunity provided by this regular hearing to exchange views with you today, early in the new legislature. this is the 22nd time that i have appeared before this committee : looking back, such frequent hearings have been instrumental in developing a very close relationship between the european central bank and the european parliament. i hope to continue and to further deepen this relationship, especially in times that are particularly demanding. heute mochte ich mich auf zwei themen konzentrieren. zunachst mochte ich ihnen unsere aktuelle einschatzung der wirtschaftlichen lage im eurogebiet mitteilen. ich mochte dabei auch auf die geldpolitischen maßnahmen der ezb und ihre wirkung eingehen. dans un second temps, je souhaiterais aborder un sujet important et actuel : la reforme de la supervision financiere en europe et plus particulierement la mise en place du conseil europeen du risque systemique. je m ’ efforcerai d ’ etre le plus concis possible mais, etant donne que la derniere audition remonte a mars et que l ’ actualite a ete tres chargee ces derniers mois, la matiere est aujourd ’ hui particulierement riche. je serai ensuite a votre disposition pour repondre a vos questions. economic and monetary developments the economic situation and outlook have improved since the previous hearing before parliament on 30 march 2009. inflation and inflationary pressures have remained low over recent months. as expected, inflation turned into negative territory over the summer period, due to the large decline in oil prices since last year. in august, annual inflation was still slightly negative, at - 0. 2 %, after a reading of - 0. 7 % in july. looking ahead, inflation is expected to turn positive again within the coming months and to remain subdued, within positive territory, over the policy - relevant horizon. this

the deliverables of the systemic risk board. the principle of “ comply or explain ” is the right one. the esrb will have very close links with the ecb. the members of the general council of the ecb will be voting members of the esrb, together with the three heads of the supervisory authorities and a member of the commission ; the members of the general council of the ecb will elect the chair and vice - chair of the esrb ; and the ecb will provide analytical, statistical, administrative and logistical support to the esrb, as suggested by the de larosiere group, communicated by the commission, decided by the ecofin council and approved by the european council in june this year. as i mentioned to your committee, the ecb stands ready to place the necessary resources and expertise at the service of supporting the esrb, in very close collaboration with the national central banks. the new institutional set - up for the esrb, and the ecb ’ s role in it, must rest on solid institutional and legal foundations. the ecb is closely and constructively participating in the ongoing legislative process on the establishment of the esrb. the ecb ’ s contribution in this process focuses on establishing in europe the most effective and robust set - up for macroprudential supervision possible. given the dramatic consequences of the current crisis, we cannot afford for europe to be ill - equipped and powerless to prevent and mitigate systemic risks. let me conclude with a remark on accountability. the fact that the link between the ecb and the esrb is very close does not mean that the reporting to your committee and to the parliament will be merged. the reporting will remain – and must remain – in the form of two separate accountability exercises because the mandates are clearly distinct. as for the european central bank, the treaty states in article 105. 1 that “ the primary objective shall be to maintain price stability ”. as regards financial stability, the treaty speaks of a “ contribution ”, in article 105. 5, stating that the ecb shall “ contribute to [ … ] the stability of the financial system ”. as for the european systemic risk board, the current legislative proposal foresees that “ the esrb shall be responsible for the macro - prudential oversight of the financial system within the community in order to prevent or mitigate systemic risks within the financial system ” ( article 3 ). the tasks include the following : “ identify and prioritise such risks ;