jean - claude trichet : ensuring price stability and confidence - five ideas english translation of a contribution by mr jean - claude trichet, president of the european central bank, published in le monde, in the edition dated 16 june 2005. * * * europe is experiencing a significant and demanding episode in our profoundly original historic undertaking, namely a voluntary union of peoples and nations, which began 55 years ago with the launch of the schuman plan. more than half a century of economic and democratic construction, with its highs and lows, its latent periods and its periods of acceleration. this is not the first time that a new idea or project has been put aside for some time or rejected. the rejection by france of the european defence community in august 1954 was initially regarded as signalling the end of european construction. however, europe then set itself new objectives, objectives which have proved to be historically successful. did jean monnet not write in his memoirs that “ those who never want to do anything because they have no guarantee that things will happen as planned are condemning themselves to immobility ”? the historical evolution of europe progresses at its own pace, which can be assessed only in the long term. i have confidence in the ability of europe to overcome its present difficulties and i share the sentiment of confidence and resolve expressed in the joint statement issued by josep borrell fontelles, jean - claude juncker and jose manuel barroso, the presidents of the european parliament, the european council and the european commission respectively. the european central bank is, in its domain, a totally executive body. together with the national central banks of the euro area, i. e. the other members of the eurosystem, it has been tasked with ensuring price stability for our 307 million fellow euro area citizens. i feel it is important today to highlight five ideas. first, there is the issue of responsibility. an independent monetary institution is ultimately responsible to public opinion. it implies that the bank regularly answers questions put to it by the european parliament. indeed, at an average of six times per year, i am invited to appear before the european parliament, more often than my american counterpart appears before the us congress. and the ecb vice - president and i are, within the g7, unique among central bank representatives in holding a press conference immediately after every monetary policy decision by the governing council, 11 times per year, tirelessly explaining the eurosystem ’ s analysis of the situation and the reasons why the governing council

cannot achieve everything. european citizens know that the eurosystem is doing and will do all it can, thanks to and by being faithful to its mandate. a sound budgetary policy which complies with the stability and growth pact is also essential. structural reforms also have a decisive role to play in strengthening competitiveness, raising the potential growth rate and stimulating job creation. behind all this is a key word in today's europe : confidence. confidence on the part of households and firms, which must be nurtured and strengthened. we are fortunate to have a european central bank which inspires such a level of confidence among europeans and the rest of the world such that our market rates are at exceptionally favourable levels. let us maintain this precious confidence which has been entrusted to europe.