stability : an inflation rate of less than 2 % but close to 2 %. over the past 12 years we have delivered a rate of 1. 97 % as a yearly average for the euro area as a whole, exactly in line with our definition. and we will continue to deliver this level of price stability in the next ten years to come. that is our primary mandate, our contribution to stability and, therefore, to confidence in europe. it is a necessary condition for growth and job creation in the euro area. i think that this solid anchoring of inflation expectations and the credibility of the ecb to deliver price stability in the medium term is positive for all countries in the euro area, including those that have adjustments to implement. in particular, if we were not credible, the medium and long - term interest rates would incorporate a higher level of inflation expectations and therefore these market interest rates would also be higher everywhere in the euro area. question : the nobel prize laureate paul krugman has also criticised the recent rate hike. he believes that the ecb intends to place on the periphery of the euro area the burden of economic adjustment to avoid the eruption of inflationary pressures in germany. is this true? trichet : we look at the euro area as a whole. we are responsible for the currency of 331 million citizens. just as the federal reserve in the united states looks at all the states of bis central bankers ’ speeches america and not particularly, for example, at florida, california or massachusetts. our decisions are based upon our assessment of what the euro area as a whole needs to enjoy price stability in the medium term. question : the european commission wants to increase its expenses in the next financial framework ( 2014 – 2020 ). what do you think of this move, also considering that thousands of european commission officials earn more than, say, the estonian prime minister. is such a situation fair? trichet : these decisions are taken by the council, namely the college of governments. in our view, governments should be very careful : if they increase spending at the level of europe as a whole, they have to reduce their spending at the national level. because when everything is taken into account – the national level plus the european level – europe has a very high level of public spending as a proportion of gdp in comparison with, for example, all other g7 advanced economies. question : are you satisfied with the way the ecb, the eu and the governments are collaborating and managing the debt crisis and the

owing to their wise management. sound management is always rewarded. it is regrettable that the pension reform in slovenia was not supported. question : slovenia doubled its “ maastricht ” debt in the last three years, from 22 % to 45 % of gdp, while the government deficit stays relatively high at 5. 5 % of gdp for the third year in a row. is the fiscal position of slovenia becoming critical? trichet : again, to slovenia as well as to all countries in the euro area or europe as a whole, the message is : be at least as sound and reasonable as required by the stability and growth pact. be ahead of the curve. it is the best way to be resilient and to create growth and jobs. question : does the debt crisis mean a lot of additional work for you? do you have holidays this summer? trichet : for all members of the ecb ’ s executive board and the governing council, for all the staff of the ecb and the national central banks, the present crisis, which started four years ago in august 2007 and which has been the worst financial crisis since the second world war, means additional work, permanent alertness and extreme attention. this is, of course, what is needed in demanding times. we all work very long hours on normal working days and also many hours on saturdays and sundays. i will have holidays in the summer. but there is, of course, permanent availability to work even on holiday. question : what has been your most difficult moment as president of the ecb? trichet : there is no “ most difficult ” moment. one permanently has to be prepared, alert and ready to take appropriate decisions. i have to say that ever since its creation, the ecb has had many challenges – the bursting of the dot - com bubble, the terrorist attack of 9 / 11, oil and bis central bankers ’ speeches commodity price shocks. i was not president at that time, when my predecessor, wim duisenberg, had to cope with the 9 / 11 shock. and all my colleagues and myself have been coping for four years with a succession of tensions that are all demanding. question : what do you consider your biggest achievement as president of the ecb? trichet : the biggest achievement of the ecb is to be able to tell 331 million fellow citizens that 12 years after the introduction of the euro, we have average yearly inflation of 1. 97 %, which is fully in line with what