jean - claude trichet : presentation of the ecb ’ s annual report 2003 to the european parliament introductory statement by mr jean - claude trichet, president of the european central bank, to the european parliament, strasbourg, 25 october 2004. * * * permettez - moi de souligner tout d ’ abord que je partage entierement votre desir de maintenir les relations etroites et fructueuses que nos institutions ont developpees au cours des dernieres annees, et que je me rejouis a la perspective de poursuivre notre dialogue dans cet esprit franc et cooperatif. j ’ ai l ’ honneur de vous presenter aujourd ’ hui le rapport annuel de la bce pour l ’ annee 2003, lequel constitue, en conformite avec les dispositions du traite, un des outils principaux de la bce pour rendre compte aux citoyens de l ’ europe et a ses representants de la politique monetaire et des activites de la bce dans les autres domaines de sa competence. die ezb ist sich der grundlegenden bedeutung ihrer rechenschaftspflicht bewusst und hat stets betont, dass das sehr hohe maß an unabhangigkeit der ezb mit strengen berichtspflichten, wie sie im eg - vertrag festgelegt sind, einhergehen muss. die ezb misst daher dem regelmaßigen dialog mit den burgern europas und ihren gewahlten vertretern hochste bedeutung bei. economic and monetary issues the ecb ’ s monetary policy operated in a rather uncertain and challenging environment in 2003. in the first half of the year, real gdp growth stagnated amid considerable uncertainty related to geopolitical tensions and the turbulences in oil prices and financial markets. following the easing of economic and geopolitical uncertainties, prospects for economic activity gradually brightened after the summer of 2003. nevertheless, overall, real gdp in the euro area increased by only 0. 5 % in 2003. annual hicp inflation slowed down slightly in 2003 to 2. 1 % on average, from 2

firms and households remained solid, benefiting from the continued passthrough of our accommodative monetary policy stance to bank lending rates. the annual growth rate of loans to non - financial corporations increased to 4. 3 % in august, from 4. 0 % in july 2019, while the annual growth rate of loans to households remained unchanged at 3. 4 % in august. the euro area bank lending survey for the third quarter of 2019 indicates a slight easing of credit standards and increasing demand for loans to households, while demand for loans to firms remained broadly stable. our accommodative monetary policy stance will help to safeguard favourable bank lending conditions and will continue to support access to financing, in particular for small and medium - sized enterprises. to sum up, a cross - check of the outcome of the economic analysis with the signals coming from the monetary analysis confirmed that an ample degree of monetary accommodation is still necessary for the continued sustained convergence of inflation to levels that are below, but close to, 2 % over the medium term. in order to reap the full benefits from our monetary policy measures, other policy areas must contribute more decisively to raising the longer - term growth potential, supporting aggregate demand at the current juncture and reducing vulnerabilities. the implementation of structural policies in euro area countries needs to be substantially stepped up to boost euro area productivity and growth potential, reduce structural unemployment and increase resilience. the 2019 country - specific recommendations should serve as the relevant signpost. regarding fiscal policies, the mildly expansionary euro area fiscal stance is currently providing some support to economic activity. in view of the weakening economic outlook and the continued prominence of downside risks, governments with fiscal space should act in an effective and timely manner. in countries where public debt is high, governments need to pursue prudent policies and meet structural balance targets, which will create the conditions for automatic stabilisers to operate freely. all countries should intensify their efforts to achieve a more growthfriendly composition of public finances. likewise, the transparent and consistent implementation of the european union ’ s fiscal and economic governance framework over time and across countries remains essential to bolster the resilience of the euro area economy. improving the functioning of economic and monetary union remains a priority. the governing council welcomes the ongoing work and urges further specific and decisive steps to complete the banking union and the capital markets union. 2 / 3 bis central bankers'speeches we are now at your disposal for