Trichet 6-6-12

◄	TOWARDS A NEW ECONOMIC EUROPEAN GOVERNANCE

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	Jean-Claude Trichet, president of the European Central Bank from 2003 to 2011, lectured during the Mandeville Lecture 6 June 2012 towards a new economic European Governance: 'MORE EUROPEAN INTEGRATION IS NECESSARY'' Dr. Trichet argued that more European integration is necessary for prosperity in Europe and an influential position in the world. "There should be an economic and fiscal federation, based on democratic foot in order to take far-reaching measures'. He pointed to the successes of the euro as the creation of jobs and low inflation. But the economic union also has some weaknesses, including the fact that the internal market is not yet finished. "It is not the Euro area as a whole, on a consolidated basis, which is presenting major weaknesses: the current account of the Euro area is balanced, the public debt outstanding as a proportion of GDP is well below the Japanese public debt outstanding and the yearly public finance deficit is well below the equivalent figures in the U.S., in Japan and in the U.K. Still several factors, in particular the absence of effective surveillance inside the Euro area, have created a large dispersion of situations between countries as regards fiscal soundness, competitiveness and therefore credit worthiness.

Jean-Claude Trichet, president of the European Central Bank from 2003 to 2011, lectured during the Mandeville Lecture 6 June 2012 towards a new economic European Governance:

'MORE EUROPEAN INTEGRATION IS NECESSARY''

Dr. Trichet argued that more European integration is necessary for prosperity in Europe and an influential position in the world. "There should be an economic and fiscal federation, based on democratic foot in order to take far-reaching measures'. He pointed to the successes of the euro as the creation of jobs and low inflation. But the economic union also has some weaknesses, including the fact that the internal market is not yet finished. "It is not the Euro area as a whole, on a consolidated basis, which is presenting major weaknesses: the current account of the Euro area is balanced, the public debt outstanding as a proportion of GDP is well below the Japanese public debt outstanding and the yearly public finance deficit is well below the equivalent figures in the U.S., in Japan and in the U.K. Still several factors, in particular the absence of effective surveillance inside the Euro area, have created a large dispersion of situations between countries as regards fiscal soundness, competitiveness and therefore credit worthiness.

According to the former ECB President there is reason enough to strive for greater European integration. The continent is faced with emerging economies like China and India, which countries also have one coin. In this new constellation of global integration is essential for prosperity and influence across Europe.

Structural measures

Trichet presented his vision of the Europe of tomorrow ', where he spoke of a' quantum leap 'that should be put. According to him, the internal market should be perfected and structural measures taken. For example, to countries that break the rules no more fines should be distributed, but should the European authorities themselves must take measures in such countries. That should at least be done in a democratic way, so with the support of the European Parliament. Trichet also insisted on a European Ministry of Finance. "I am fully aware of the sophistication of these ideas. But I really think it is necessary for Europeans to learn lessons from the events of today and the past.

Modern Hero

Trichet was mentioned for his efforts in Europe and the euro "a modern hero. "In 2008, when the governments of the euro zone were in disarray, the ECB under direction of Trichet, acted decisively. Trichet is a real European. The efforts and determination to continue on the path of European political and financial integration, does receive today the honor they deserve.

The 18th Mandeville Lecture 'Towards a new economic European Governance' was held in the Aula of Erasmus University Rotterdam.