that the escb will pursue in stage three of monetary union. before explaining our decision on the strategy, let me emphasise certain important characteristics of the environment in which the single monetary policy will operate as of next january. of most concern to the escb are some uncertainties which will inevitably arise as a result of the move to stage three. these relate, in particular, to the way in which the transition to stage three of monetary union will affect economic behaviour and institutional and financial structures in the euro area. they also relate to statistical issues. against this background, the governing council has chosen a distinct monetary policy strategy, one that reflects the special circumstances it faces at present. this strategy will ensure continuity with the successful strategies pursued by participating national central banks in recent years, while taking into account - to the extent needed - the unique situation created by the transition to monetary union. with this context in mind, the governing council today agreed on the main elements of the stability - oriented monetary policy strategy of the escb. these elements concern : • • • the quantitative definition of the primary objective of the single monetary policy, price stability ; a prominent role for money with a reference value for the growth of a monetary aggregate ; and a broadly - based assessment of the outlook for future price developments. first, let me stress that, as mandated by the treaty establishing the european community, the maintenance of price stability will be the primary objective of the escb. therefore, the escb ’ s monetary policy strategy will focus strictly on this objective. in the interest of transparency and in order to give clear guidance with regard to expectations regarding future price developments, the governing council of the ecb has agreed to announce a quantitative definition of price stability. in this context, the governing council of the ecb has adopted the following definition : “ price stability shall be defined as a year - on - year increase in the harmonised index of consumer prices ( hicp ) for the euro area of below 2 % ”. let me emphasise the fact that price stability is an objective which is to be maintained over the medium term. the current rate of hicp inflation in the euro area is in line with this objective. three features of this definition should be highlighted : • • • first, the hicp is the most appropriate price measure for the escb ’ s definition of price stability. it is the only price index that will be sufficiently harmonised across the euro area at the start of stage three. second, by defining price

jean - claude trichet : interview with suddeutsche zeitung interview with mr jean - claude trichet, president of the european central bank, and suddeutsche zeitung, conducted by ms helga einecke and mr martin hesse, published on 29 april 2009. * * * mr. president, when will the end of the crisis finally be in sight? it is an on - going phenomenon. that is why we have to remain constantly alert. in the summer of 2007 we experienced unusual events in the money market and were the first central bank to respond. since mid - september 2008 we have been in a very serious crisis. the new, globalised financial world that has been created over the last 10 to 15 years is for the first time being put to the test. it is proving to be much more fragile and less resilient than it should be. can this world ever be brought back to health? yes, certainly. it calls for bold decisions today as well as credible exit strategies to improve confidence of our fellow citizens and of the corporate sector on our capacity to go back to medium – long term sustainable path. this is true for fiscal policies as well as for monetary policies. and we have to implement effectively, efficiently and as rapidly as possible the decisions the decisions taken in the g - 20 meetings. who must accept responsibility for this crisis? i don ’ t see any value in looking for scapegoats. for instance, some may make banks or rating agencies the whipping boys. but to me the entire financial system has proved unsatisfactory. it must be reformed from the bottom up. all parts and parcels of global finance together have not delivered the stability that citizens rightly demand. thus, significant improvements must be introduced everywhere. we owe this to the citizens and to the whole world. have central banks not been able to prevent this crisis? in the past we have made no compromises on our objective of price stability. from 2003 to 2004 we were publicly urged by the heads of the governments of three large countries to cut rates. we said no. in december 2005 ten out of 12 governments in the euro area called on us not to raise rates. we still did it and we have delivered what our democracies and our fellow citizens had asked us to deliver, namely stable prices. how great is the political pressure? we are not subject to political interference or short - term thinking. the eu treaty is crystal clear on this point and guarantees fully our independence