Local view for "http://purl.org/linkedpolitics/eu/plenary/2007-07-11-Speech-3-294"
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"en.20070711.27.3-294"2
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"Madam President, I have five points to make in response to the question. First of all, I should like to say again that the reports by Mr Rosati and Mr Mitchell were very impressive and full of very important ideas and recommendations.
I will preserve most firmly the independence of the ECB in all circumstances. My 18 colleagues and I intend to adhere strictly to the Treaty on this point, as on all the others. It will be about the Treaty, the whole Treaty, and nothing but the Treaty.
As President, I am firmly committed to maintaining the ECB's independence in all circumstances. My 18 colleagues and I intend to adhere strictly to the Treaty, the whole Treaty and nothing but the Treaty.
First, on Mr Schwab’s remarks: it is clear that there is a question of institutional philosophy. There are 13 exemplary political democracies in the euro area, and next January there will be 15. In the future, there may be 25 or even more. It is inconceivable that changes would occur three or four times a year because of changes brought about by the normal functioning of our democracy. Clearly, commitments made within the Eurogroup are either kept or they are not. If they are not kept, then it is impossible to have a Eurogroup which has authority – which, I am sure, is the wish and the will of all the countries concerned.
My second point concerns jobs. Figures are figures. I regularly hear that the euro is not designed to create jobs, that we have a problem with growth and jobs and so forth. The euro was created on the basis of a philosophy that is shared the world over: that price stability, and credibility in ensuring price stability, are prerequisites for sustainable growth and job creation. That is the decision that Europeans have taken, but they are in good company, because it is a consensus. What are the figures? More than 12 million jobs have been created since the euro was set up – more than 12 million; two million, as the rapporteur said very eloquently a moment ago, were created in 2006. Since the euro was launched, we have created more jobs even than the US. We have the lowest unemployment rate for 25 years. We are not satisfied, and we are right not to be satisfied, because we have to do much better. However, let it not be said that the euro is playing against job creation – it is not true, and we can prove it.
As regards the obsession we might have with price stability, I have already said that price stability is a prerequisite for sustainable growth and sustainable job creation. Let me also say that this sentiment is fully shared by our fellow citizens. All the surveys show that they are fully in favour, by an incredible margin, of price stability, and that they are not necessarily fully satisfied with the present situation; they are encouraging us to be as credible as possible. If, today, we have a 50-year rate of 4.67% and a 30-year rate of 4.65% (the 50-year rate applies to France, where bonds are issued for 50 years, and the 30-year rate to Germany), these figures are still much lower than the 10-year rate in the United States. Why are they so low? Because we are credible – on ensuring price stability over 30 years and, even, over 50 years. That is the contribution our credibility makes in Europe.
Let me mention the exchange issue, which is very important. Firstly, the rules are clear – they are set out in the Treaty. They are exactly the same as the rules in operation in Germany since the foundation of the Bundesbank after the Second World War. They are exactly the same as those used under the French system introduced in January 1994, when the Banque de France became independent, as called for by the Treaty of Maastricht and agreed unanimously by the French Left and Right, who decided, as Mr Goebbels said, to change the Constitution of the Fifth Republic to make the central bank independent.
So, the rules are clear. They are the same as in a number of countries. In practice, as has been said here very eloquently by an honourable Member, this means that we are in a floating exchange rate system, and we have a forum to discuss those matters: the G7. To my knowledge, Jean-Claude Juncker and I signed the G7 statement, together with our US partners – the Federal Reserve as well as the Secretary of the Treasury – with our Japanese partners and with our other partners, the UK and Canada.
This is how we have discussed matters since the establishment of the floating exchange rate system. That is not to say that the situation is easy or very nice, but let us be as responsible as possible in the present circumstances and let us be sure that we have this dialogue – between ourselves, certainly, and with our partners. It is inconceivable that we could do things that would be contradictory to our partners’ wishes. It will not work.
Madam President, I do not want to bore you by restating what we have said, but together we are saying to China that we are not satisfied with the present situation. We are, certainly, echoing what has been said by our Japanese friend, that the markets are not fully recognising their present fundamentals, and, as regards the United States, we said together that we noted that the Secretary of the Treasury and the monetary authority had said that a strong dollar vis-à-vis the euro was in their interests. I shall not say anything else on that point, but we have to know exactly what the situation is.
I come now to the last point, which is also an important one: independence. I noted with great attention the fact that all governments in Europe have said that they would fully respect the independence of the Central Bank. Jean-Claude Juncker, on behalf of the Eurogroup, said that a moment ago. Independence is in the Treaty and is the absolute key for credibility. How could we be credible over the next 50 years if we were not deemed independent by all those who are taking decisions – here in Europe, in New York, in Tokyo, in Singapore, in Hong Kong and elsewhere? They trust us because we are independent, but independence is not only based upon full respect of the Treaty by our partners, the executive branches, it also depends on us. I wanted to say, on behalf of the Governing Council – if I could I would say it in several languages to make sure I was well understood!"@en1
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"ECB Chairman"1
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