http://www.euronews.com/ Alex Taylor: “One of the key players in the continuing doom and gloom surrounding the euro is the European Central Bank. What exactly is its role? Does it contribute to the crisis and does it have any ideas for getting us out of the mess? On I-Talk today the former president of the ECB, Mr Jean-Claude Trichet, who is with us on duplex as you can see from the Eiffel Tower, from Paris. Mr Trichet, hello and welcome to I-Talk.”

Viewer Clara: “I’m Clara from Brussels and I wonder if, as the ex-president of the European Central Bank, you feel responsible for the crisis?”

Jean-Claude Trichet: “I think that of course when you have an important responsibility you have to be up to the responsibility permanently. As you know, we were and we are extremely faithful to our mandate, delivering price stability, which is a condition but not a sufficient condition but a necessary condition for financial stability. And I have to say we had to cope with a global crisis. The ECB was the first to respond immediately by non-standard measures, very bold non-standard measures but never forgetting that the primary mandate is price stability.”

Alex Taylor: “Was it a problem of communication? Perhaps the ECB didn’t make its point clearly enough to the people of Europe, and to governments?”

Jean-Claude Trichet: “Well I don’t think so. Frankly speaking we were very very loud and clear on the fact that one had to respect the Stability and Growth Pact. We had a conflict with several governments, including the biggest government in Europe in 2003 and 2004. We also stressed permanently that it was absolutely necessary to monitor very very closely the competitive indicators and I could list a number of episodes where we had very very big problems with governments, to be absolutely clear.”

Czech Viewer: “How in depth can European countries ever get their finances right when, in the spread of the neo-Liberal dogma, they are asked to adopt stringent austerity measures that greatly decrease their revenues? Is it not true that because of privatisations, deregulations and low corporate taxation, public budgets are deprived of key resources, of their income and thus let further down into the vicious spiral of debt.

Alex Taylor: “We do seem to have changed gear, Mr Trichet. Before it was austerity, austerity and now all of a sudden it’s growth. Europeans are confused. What do you say?”

Jean-Claude Trichet: “No, I would say there is no confusion there. When you are as sound and reasonable as possible for your budget and your competitiveness, you are going through the difficulty of the times very very well. The countries in the advanced economies that behaved the most properly in the past, before the crisis, have done remarkably well. I could quote Germany, inside the euro area. It has diminished its unemployment over the crisis because it had a very good position as regards their fiscal policies, and also a very good position as regards competitive policies. Not by chance but because hard work had been done. And I could also pick up for example Canada, which behaved extremely properly since the crisis erupted, despite the fact that they are very close to the US, which was the epicentre of the start of the crisis and it is again because they behaved extremely properly in their macro policies, in their fiscal policies.”

Italian Viewer: “I am Italian, I am a union member in the transport sector. And I would like to know why, at European level, they didn’t help countries with problems to solve their debt problems by issuing Eurobonds? Thank you.”

Jean-Claude Trichet: “Yes. Well, I would say we have to know exactly what we are talking about. There are already Eurobonds. The bonds which are issued by the EFSF (the European Financial Stability Facility) and tomorrow by the ESF (European Stabilisation Fund). These are Eurobonds and they are, they might be, very useful. You also have the other extreme which would be Eurobonds issued jointly and severally by all treasuries of the euro area. That of course supposes that we have already a fully-fledged political federation, and a full-fledged federal budget which would encompass all national budgets – and that supposes an extremely bold jump towards European unity, political European unity.”

Belgian Viewer: “I am Pascal from Brussels and I would simply like to know why we are paying, or want to pay money to people in the south of Europe where bad policies have been followed by their leaders for many years? Thank you.”

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