##b should also take greater account than it did in the recent past of economic developments in individual countries? first of all, as you know, the treaty requires us to maintain price stability in the euro area as a whole, not to monitor the economic policies of different countries. this is the task of the eurogroup and of the commission according to the treaty. and we have delivered price stability, which was our treaty responsibility. but since the inception of the euro we have constantly asked the governments individually and collectively to live up to their responsibilities. as i said, we fought to defend the stability and growth pact in 2005 when three main euro area countries wanted to water it down. and since then we have been giving the eurogroup detailed information on the evolution of the competitiveness of member states and we are calling for rigorous monitoring of fiscal and economic policies. 8. in your opinion then, national governments are to blame for the current situation. let ’ s talk about italy. from your perspective, how do you judge the country ’ s efforts in the eight years of your presidency? the italian economy has tremendous potential given the quality of its human resources and its corporate culture. and yet economic growth has been disappointing. for this reason, i believe in particular that structural reforms are necessary to increase the growth potential of an economy held back by too many obstacles – and they prevent it from achieving its full potential. 9. italy has been the subject of intense market turmoil this summer. in this regard, how do you view the recent package of austerity measures proposed by the italian government? these measures decided by the government in its announcement on 5 august are of extreme importance to rapidly reduce public finance deficits and enhance the flexibility of the italian economy. it is therefore of the essence that the overall goal in terms of the public finance improvement that was announced be fully confirmed and substantiated. this is decisive to consolidate and reinforce the quality and the credibility of the italian strategy and of the italian signature. bis central bankers ’ speeches 10. and what about structural reforms? the serious situation in italy, like the dramatic drifting in greece, might it not be linked to an obsolete economic structure, not only to the high public debt? my message is clear : it is essential that all those measures that allow full exploitation of italy ’ s medium and long - term economic potential are introduced. today there is a huge potential that is not tapped as it should be. 11. the message that you sent to the italian government in early

of non - standard steps, but we took them cautiously and always with a view to ensuring a better transmission of monetary policy. everybody knows as well that we are fiercely independent. the governing council has proved its independence through all its decisions and also through its firm and explicit messages to governments on all occasions. bis central bankers ’ speeches 15. president trichet, you will leave at the end of october after eight years as the head of the ecb. mario draghi, the governor of the banca d ’ italia, will replace you. how has the bank that you will pass on to him changed in recent years? do you have any tips to give him? mario draghi has been a wise and strong member of the governing council for many years. he knows the institution extremely well and, of course, was a party to all the decisions we have taken. what matters is the permanence of the institution. i am certain that mario draghi will ensure the institution ’ s continuity and credibility over the long term. bis central bankers ’ speeches