jean - claude trichet : euro area statistics and their use for ecb policy - making speech by mr jean - claude trichet, president of the ecb, at the second ecb conference on statistics, frankfurt, 22 - 23 april 2004. * * * colleagues, fellow central bankers, ladies and gentlemen, i would like to welcome you most warmly to this the second ecb conference on statistics. i am particularly happy to see so many participants from the countries that will join the european union ( eu ) in just a few days time. this milestone in european history marks the successful completion of intensive preparations in many fields, including statistics. the goal of this conference is to review the statistical requirements for central bank policy - making. in addition, it provides the statistical community with an opportunity to bid farewell to eugenio domingo solans, the executive board member responsible for statistics, who will leave the ecb at the end of may 2004. although the emphasis of this conference will obviously be the future of statistics, i would also like to take this opportunity to briefly review the current state of euro area statistics that are produced by the european system of central banks ( escb ). let me first, however, underline the importance of euro area statistics for ecb policy - making. the importance of euro area statistics we should not underestimate the importance of official monetary, financial and other economic statistics for the ecb ’ s monetary policy. as statistics provide the foundation for economic analysis and policy - making, the availability of trustworthy and timely statistical time - series is a prerequisite for an effective and correct assessment of the monetary and economic situation and future prospects. moreover, economic agents also use these statistics for their own decisions, which then drive the developments of financial and other economic markets. in this regard, i would like to stress the importance of a single set of statistics that is used by all economic and financial policy - makers, market participants and the public at large. the familiar credo of the media, “ facts are sacred, opinions are free ”, should also apply to statistics and the use of statistics. an effective policy preparation process requires that public and private decision - makers need not debate about the numbers, whatever the outcomes are. instead they can then focus their deliberations on the best possible policy assessment based on these statistics and the forecasts derived from them. of course, this also places a heavy responsibility on the shoulders of those who are responsible for the development, compilation and dissemination

comes to analysing the situation. the discussion on thursday was focused more on whether it was advisable to wait for more data before reacting. but i don ’ t see any substantive differences at this point in time. q : draghi has called on governments to go for fiscal expansion and reforms – it sounded almost like a desperate plea. a : mario draghi ’ s speech at jackson hole in august and the conclusions of the governing council last thursday reflect the seriousness of the situation. the euro area faces risks to its economic growth on such a scale that it ’ s necessary to use all available tools to support the economy. and that means using the instruments on the demand side and the supply side. on the demand side, you have monetary policy. and what the ecb has announced shows that we are committed to taking steps and that we have instruments we are ready to use. you have also fiscal policy, in those countries that have space to expand it. but what matters bis central bankers ’ speeches most are the structural reforms, because without them no supply or demand measure will have an effect. q : is that message aimed at france and italy? a : we are not asking anything from anyone in particular. there is nothing of a give and take here. the ecb is independent and does not enter into this kind of bargaining. we do what we think we have to do and we expect others to do their job. we are just highlighting the conditions for it to be effective. for example, in our view, the countries that want flexibility in applying the stability pact should announce reforms beforehand, because flexibility is useless if it isn ’ t backed by reforms. fiscal policy should be used to support aggregate demand – but within the framework of the stability pact, and that ’ s an important “ but ”. the pact creates confidence. and stretching it or infringing it until it is no longer credible would undermine confidence and, in the end, be counterproductive for growth. in other words, flexibility without damaging the credibility of the rules. q : germany does not seem to share this need for fiscal stimulus. a : our measures will be much more effective if we see structural reforms and a fiscal position appropriate for the euro area. this should be discussed and evaluated at the euro area level. it is normal for the ecb to say this because it monitors the situation across the euro area and is interested in its stability and growth. q : its measures have flooded the market with liquidity.