opinion? “ i think it is important that we have a progressive improvement in the global governance. the g20 should be given credit for being the place where global governance could be effective. the g20 is called to be essential, appropriately enlightened by the imf, because we need to have both as good analytical presentations and diagnosis and the peer pressure of the g20. the g20 has to address the issues of the domestic large imbalances between savings and investments, and of the set of unsustainable external imbalances. we know that these imbalances have been at the roots of the present difficulties. if we don ’ t correct them, we ’ ll have the recipe for the next major crisis. and this of course would be totally unacceptable. ” could it be dangerous for the recovery, if governments would withdraw their support to the economy? “ one thing is sure. when time comes, systemic economies are not credible in going back to sustainable fiscal policy in the mid to long run. we won ’ t have the recovery which we are hoping for. because governments would not inspire confidence to households and corporate business. it is the evaporation of confidence that created this dramatic turmoil. now we have to do everything to rebuild confidence. ” when is the timing for a fiscal exit strategy? “ the position of the governing council of the ecb is that the fiscal adjustment process should start, in any case, not later than the economic recovery and that the consolidated effort should be stepped up in 2011. this is the position for the euro area as a whole. naturally some countries have more problems than others and they have to take into account their particular situation. ” in germany and italy there is a debate for cutting taxes – would it be a right way to support growth? “ the rule which is the best in terms of running a fiscal policy is : first, to be careful that the level of deficits in the mid - long term is in line with the stability and growth pact ; that the fiscal strategy is sustainable and inspire confidence. second : to go to this position you need to reduce public expenditure. and third, if it is not enough, you have to increase taxes. only in the case your reduction of spending is big enough to give you additional room you can embark on tax reductions. there is no other way to proceed. i ’ m not responding for italy, or for a particular country, it is simple arithmetic. ” how can a high ratio of debt

mario draghi : ecb press conference – introductory statement introductory statement by mr mario draghi, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 12 january 2012. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. let me wish you all a happy new year. we will now report on the outcome of today ’ s meeting of the governing council. based on its regular economic and monetary analyses, the governing council decided today to keep the key ecb interest rates unchanged, following the 25 basis point decreases on 3 november and 8 december 2011. the information that has become available since early december broadly confirms our previous assessment. inflation is likely to stay above 2 % for several months to come, before declining to below 2 %. at the same time, the underlying pace of monetary expansion remains moderate. as expected, ongoing financial market tensions continue to dampen economic activity in the euro area, while, according to some recent survey indicators, there are tentative signs of a stabilisation in activity at low levels. the economic outlook remains subject to high uncertainty and substantial downside risks. in such an environment, cost, wage and price pressures in the euro area should remain modest and inflation rates should develop in line with price stability over the policy - relevant horizon. overall, it is essential for monetary policy to maintain price stability over the medium term, thereby ensuring a firm anchoring of inflation expectations in the euro area in line with our aim of maintaining inflation rates below, but close to, 2 % over the medium term. such anchoring is a prerequisite for monetary policy to make its contribution towards supporting economic growth and job creation in the euro area. a very thorough analysis of all incoming data and developments over the period ahead is warranted. the provision of liquidity and the allotment modes for refinancing operations will continue to support euro area banks, and thus the financing of the real economy. the extensive recourse to the first three - year refinancing operation indicates that our non - standard policy measures are providing a substantial contribution to improving the funding situation of banks, thereby supporting financing conditions and confidence. in addition, we are actively working towards the implementation of all the measures announced at our december meeting, which should provide additional support to the economy. as stated on previous occasions, all the nonstandard monetary policy measures are