HIGHLIGHTS-ECB’s Trichet, Spain’s Ordonez comments

MADRID, Dec 10 (BestGrowthStock) – Following are comments by
European Central Bank President Jean-Claude Trichet at a news
conference with Spain’s Central Bank Governor Miguel Angel
Fernandez Ordonez on Friday.

TRICHET ON BANK FUNDING

“In the last governing council meeting we decided it was
proper to maintain the overall full allotment fixed rate supply
of liquidity on three month basis … that was appreciated by
the market.”

TRICHET ON EURO BONDS

“I would like proposals to be floated when we have a
decision to communicate … there is no decision (on new
proposal that has just been made).”

TRICHET ON STRESS TESTS

“Stress tests are (a) very useful concept and tool that is
utilized on both sides of the Atlantic. (It is) important that
they are used on a regular basis.”

TRICHET ON SPANISH LABOUR MARKET

“It is certainly extremely important to deepen structural
reforms of the labour market.

“We consider also that for all countries structural reforms
are of the essence.”

TRICHET ON DEFICITS

“It is true for all countries … we consider it extremely
important that we target for deficit in years to come … fully
substantiated by decisions.”

ON PRICE STABILITY

“All our decisions are designed to deliver price stability.”

“We are ensuring price stability … for 16 countries. This
is our responsbility….we have done that since Jan. 1 1999.”

“We expect all other authorities to be up to their
responsibilities.”

TRICHET ON COMMODITIES/OIL

“The price of oil and commodities is (a) permanent issue …
we have to take that into account when advising monetary policy.
It is an area where we are practising permanent observation and
alertness.”

TRICHET ON EUROPEAN RECOVERY

“The growth for the euro area as a whole … has been
confirming that the recovery was on track … and again hard
work is being done to put our fiscal position in good order and
this is very visible.”

TRICHET ON SPAIN

“It’s good Spain is helped by the fact that other ecomonies
are picking up. … it doesn’t mean it is time for complacency.”

TRICHET ON GREECE AND IRELAND

“What has been decided by the governments of Ireland and
Greece has been judged appropriate by the international
community.”

FROM ECB STATEMENT:

GLOBAL IMBALANCES

“Governors highlighted the fact that the reduction in global
imbalances that occurred during the crisis might not be lasting,
stressing the need to tackle the structural determinants of
those imbalances.”

“In this context, in deficit countries, promoting national
savings was considered of the essence. Moreover, in the case of
surplus economies, rebalancing towards domestic demand was
considered as appropriate.”

“In general, exchange rate flexibility should be enhanced so
as to reflect underlying fundamentals.”

FINANCIAL FLOWS

“Participants agreed that exchange rate flexibility may act
as an important shock absorber for countries facing strong and
volatile capital inflows, while capital controls should be used
with caution, due to the lasting distortions they entail.”

HIGHLIGHTS-ECB’s Trichet, Spain’s Ordonez comments