benoit cœure : exchange of views with members of the french parliament introductory remarks by mr benoit cœure, member of the executive board of the european central bank, prior to an informal exchange of views with the finance committee of the national assembly, paris, 15 may 2019. * * * mr chairman, ladies and gentlemen of the national assembly, thank you for inviting me here today. it is a pleasure to engage in an informal exchange of views with you today on the ecb ’ s monetary policy, and on policies to raise the economic potential of the euro area. allow me to start by briefly discussing the economic situation of the euro area. the euro area economic outlook in 2018 the euro area economy grew by 1. 9 %, compared with 2. 4 % in the previous year. this moderation in economic growth was mainly due to weaker global trade, as well as some temporary factors at both the domestic and global levels. while there are signs that some of the idiosyncratic domestic factors dampening growth are fading, global headwinds continue to weigh on euro area growth developments. moreover, the persistence of uncertainties related to geopolitical factors, the threat of protectionism and vulnerabilities in emerging markets is leaving marks on economic sentiment. as a result, the slower growth momentum has extended into the current year. at the same time, the euro area economy continues to exhibit a high level of capacity utilisation, and the unemployment rate has continued its downward trend. in march it stood at 7. 7 %, its lowest level since september 2008. employment gains and rising wages continue to underpin the resilience of the domestic economy. looking ahead, the latest ecb staff projections from march 2019 put euro area annual real gdp growth at 1. 1 % in 2019, 1. 6 % in 2020 and 1. 5 % in 2021. at the same time, the persistence of uncertainties, mainly stemming from the global environment, continues to pose downside risks to the growth outlook. looking at inflation developments, euro area annual hicp inflation was 1. 7 % in april 2019. while measures of underlying inflation remain generally muted, the ongoing economic expansion, with tightening labour markets and rising wages, will support the further build - up of price pressures. the latest ecb staff projections foresee annual euro area headline inflation of 1. 2 % in 2019, 1. 5 % in 2020 and 1. 6 % in 2021. the ecb ’ s monetary policy

namely that it would bring prosperity and opportunities, we need to step up our efforts at both national and euro area level to strengthen the architecture of the single currency. many of the failings that caused and perpetuated the crisis remain unresolved. at a time of heightened global uncertainty, completing the euro area ’ s architecture is also necessary for europe to be able to achieve its other objectives. europeans won ’ t be able to foster cooperation on security and defence, or to speak with one voice on international affairs, or to complete the single market if they repeatedly have to tackle economic crises which are largely of their own making. a sound and sustainable euro area will help redirect political capital where it is most needed. ensuring the political relevance and legitimacy of this process is in the hands of the european parliament and national parliaments. i very much look forward to today ’ s discussion. thank you. 4 / 4 bis central bankers'speeches