coordination to common decision - making, from shared rules to 3 / 4 bis central bankers'speeches institutions, is necessary but it requires time. this should not be an excuse for inaction. many of the basic steps for this to happen need to be taken now, namely designing an ambitious reform plan and building trust among all parties. i am confident that you and the eu leaders will again play an instrumental role in moving this emu agenda forward, so that we can deliver tangible results to mark the 20th anniversary of the euro. thank you for your attention. i am now at your disposal for questions. 1 opinion on a proposal for a regulation on the establishment of a european investment stabilisation function ( con / 2018 / 51 ), 9. 11. 2018. www. ecb. europa. eu / ecb / legal / pdf / en _ con _ 2018 _ 51 _ signed. pdf 2 opinion on a proposal for a regulation on the establishment of the european monetary fund ( con / 2018 / 20 ), oj c 220, 25. 6. 2018, p. 2. www. ecb. europa. eu / ecb / legal / pdf / celex _ 52018ab0020 _ en _ txt. pdf 4 / 4 bis central bankers'speeches

##graded recently as they are seen as overindebted. how serious negative impacts could this have on the credibility of the monetary union, given that the ecb has no fiscal power? trichet : the most recent forecast of the european commission shows that this year the budget deficit in the euro area countries will reach an average of 4 %, with 7 countries out of the 16 above the 3 % threshold. its important to emphasise that this situation should be temporary and reversed as soon as possible. it should not be forgotten that the rules of the sgp are very important for the cohesion of the euro area. these rules are also underpinned by strong financial and economic principles. governments have to take into account the fact that if their citizens consider that the fiscal policy of their government would not be sustainable in the long term, confidence would drain away. and in such a case, when confidence is lacking, additional public expenditure will not have a positive effect on growth. on the second question, following an episode in which the pricing of risks was, in general, too low, markets now have a tendency to overvalue risks. but it does not affect the euro as a currency. rather, it is clear that the single currency has proved to be an anchor of confidence and stability during this crisis. if you think back to the european currency turbulence and its consequences in 1992 and 1993, you can imagine what consequences the crisis of recent months would have had for the euro area without the euro – both on the interest rate markets and on the exchange markets. china finance : what challenges do the us quantitative easing policy pose for the euro area? what's your assessment on the need for coordination on economic and monetary policies between the major economies in bringing about an early recovery of the global economy? trichet : i believe that all central banks are doing what is necessary for the economic area they are responsible for and responding to the requirements of the specific conditions. i do not see the point in comparing one central bank ’ s actions with the other. as i said before, the ecb ’ s open market operations and collateral framework of today are already in a “ nonstandard ” mode and its measures can be interpreted as a way of additional “ non standard risk taking ”. at the same time, we have a very close co - operation with our colleagues on the other side of the atlantic, which proved to be useful precisely in the times we are living. the international meetings, in particular the global