european central bank : press conference – introductory statement introductory statement by mr jean - claude trichet, president of the european central bank, and mr vitor constancio, vice - president of the european central bank, frankfurt am main, 4 november 2010. * * * ladies and gentlemen, the vice - president and i are very pleased to welcome you to our press conference. we will now report on the outcome of today ’ s meeting. based on its regular economic and monetary analyses, the governing council continues to view the current key ecb interest rates as appropriate. it therefore decided to leave them unchanged. taking into account all the new information and analyses which have become available since our meeting on 7 october 2010, we continue to expect price developments to remain moderate over the policy - relevant medium - term horizon. recent economic data are consistent with our assessment that the underlying momentum of the recovery remains positive. at the same time, uncertainty is prevailing. our monetary analysis confirms that inflationary pressures over the medium term remain contained. we expect price stability to be maintained over the medium term, thereby supporting the purchasing power of euro area households. inflation expectations remain firmly anchored in line with our aim of keeping inflation rates below, but close to, 2 % over the medium term. the firm anchoring of inflation expectations remains of the essence. overall, the current monetary policy stance remains accommodative. the stance, the provision of liquidity and the allotment modes will be adjusted as appropriate, taking into account the fact that all the non - standard measures taken during the period of acute financial market tensions are fully consistent with our mandate and, by construction, temporary in nature. accordingly, the governing council will continue to monitor all developments over the period ahead very closely. let me now explain our assessment in greater detail, starting with the economic analysis. recent data releases and survey evidence generally confirm our view that the positive underlying momentum of the economic recovery in the euro area remains in place. in line with previous expectations, this implies ongoing real gdp growth in the second half of this year. the global recovery is expected to proceed, and this should imply a continued positive impact on the demand for euro area exports. at the same time, private sector domestic demand should contribute to growth, supported by the accommodative monetary policy stance and the measures adopted to restore the functioning of the financial system. however, the recovery in activity is expected to be dampened by the process of balance sheet adjustment in various sectors.

##ary plans currently being prepared for 2004, there be a correction of excessive deficits within the agreed time - frame in the countries concerned. in the other countries with fiscal imbalances, a structural consolidation effort of at least 0. 5 % of gdp per year is required. all fiscal plans need to be part of a comprehensive and credible medium - term strategy, with an emphasis on expenditure restraint and a growth - oriented restructuring of expenditure. another area in which we have seen insufficient progress over recent years is that of structural reforms. while some initiatives are under way, more needs to be done to address structural rigidities in the labour and product markets. i should like to emphasise that the benefits of these reforms for the economic growth potential of the euro area would be substantial. such reforms are essential to address what is perceived as the euro area's main economic problem, namely the high level of structural unemployment. while these benefits will be fully reaped over the medium term, i am also convinced that reforms would also support economic growth in the short term, as they would strengthen confidence and make the euro area more attractive to investors. 2. issues relating to euro banknotes let me now turn to issues relating to euro banknotes. continuing a practice that was established last year, the ecb published, in july, its biannual information on the counterfeiting of the euro. the data confirmed what was expected from the outset, namely that the counterfeiting figures would increase in the early years of the new currency. in addition, because of its status as an international currency, the euro may be considered a more attractive target than any of the legacy currencies were. however, despite these factors, and although it may be too early to identify any reliable trends, euro counterfeiting has currently settled at a level far lower than the aggregate level of counterfeiting of the legacy currencies in 2001. this factor should be clearly emphasised, since much of the public reporting in this regard has been exaggerated or distorted. the euro banknotes are designed to be among the best in the world when it comes to counterfeit resistance. moreover, in line with the normal practice of central banks, preparatory work has begun on developing even better protected banknotes. these may be issued towards the end of this decade. however, even the most sophisticated security devices will be useless if the banknote user makes no effort to check them. therefore, our message to the public in our press releases on counter