central bank independence. we expect from governments strict respect for the principle of budgetary discipline and effective mutual surveillance. the purchases made on the secondary market cannot be used to circumvent the fundamental principle of budgetary discipline. the securities markets programme strictly aims at correcting malfunctioning of markets. the prohibition of monetary financing underlines precisely the fact that budgetary discipline is of the utmost importance. we have taken note of the precise additional commitments taken by some euro area governments to accelerate fiscal consolidation and to ensure the sustainability of their public finances. ” i have nothing to withdraw from these remarks of may 2010. they remain fully valid. we expect from governments strict respect for the principle of budgetary discipline and effective mutual surveillance. it is of utmost importance that these commitments are now implemented strictly and timely. they need to be backed by concrete measures. this applies to both the imf / eu adjustment programmes and the renewed commitment of all euro area governments to the agreed fiscal targets. the full and timely implementation of the 21 july agreement between heads of state or government is of essence in this respect. while a special arrangement for greece has been launched, the inflexible determination of all other euro area governments to fully honour their own individual sovereign signature is key in returning to sustainable and healthy public finances and contribute to stable market conditions. thank you for your attention. speech on “ the ecb ’ s response to the recent tensions in financial markets ”, economic conference of the oesterreichische nationalbank, vienna, 31 may 2010. bis central bankers ’ speeches

jean - claude trichet : hearing at the committee on economic and monetary affairs of the european parliament introductory statement by mr jean - claude trichet, president of the european central bank, at a hearing at the committee on economic and monetary affairs of the european parliament, brussels, 29 august 2011. * * * dear madam chair, dear honourable members, thank you very much for the invitation to the exchange of views today. you asked me to begin with a brief overview of the main recent economic and monetary developments in the euro area and recent monetary policy decisions. i. economic and monetary developments incoming information since our last regular hearing in june continue to point towards ongoing growth in the euro area, although – as expected – at a slower pace. after a strong increase of 0. 8 % quarter - on - quarter in the first quarter of 2011, partly due to special factors, real gdp growth decelerated to 0. 2 % quarter - on - quarter in the second quarter. looking ahead, we continue to see the euro area economy growing at a modest pace in a context of overall relatively sound economic fundamentals for the euro area as a whole. at the same time, not least because of the recently re - emerged tensions in financial markets, uncertainty remains particularly high. this mainly relates to ongoing fiscal and economic adjustment in a number of euro area countries and most other advanced economies, as well as the overall outlook for the global economy. in particular, the united states has been facing both fiscal and structural headwinds amidst weakened economic prospects. inflation in the euro area has remained elevated for some months, mainly driven by commodity prices. we expect to see inflation still above 2 % over the months ahead. risks to the medium - term outlook for price developments are under study in the context of the ecb staff projections that will be released early september. our monetary analysis indicates that the underlying pace of monetary expansion remains moderate but monetary liquidity remains ample, with the potential to accommodate price pressures. at the same time, monetary liquidity is likely to be held more for precautionary reasons rather than for spending purposes. the governing council of the ecb is determined to ensure that inflation expectations continue to be firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. ii. recent measures taken in response to the intensification of the crisis early august let me turn to our response to the deterioration in financial markets in the second half of july and early august