Brussels, 30/11/2004 (Agence Europe) - The meeting between the president of the European Central Bank (ECB) and the European Parliament economic and monetary committee focused on the exchange rates of the euro and dollar, as well as the Stability and Growth Pact (SGP). As underlined by leader of the Socialists Pervenche Beres, dialogue on Tuesday allowed Jean-Claude Trichet to "drive his message home" but did not allow for further explanation on these two themes. On the Kok report, he immediately welcomed the effective evaluation of the Lisbon strategy and called for further commitment from Member States.
Before deciding on rates on Thursday, Trichet said that conditions for keeping up growth were in place although it could be a little lower than forecast. Not wishing to anticipate new forecasts from his services which will be published on Thursday, he conceded that oil price hikes would influence the rise in inflation. Inflation stood at 2.2% in November and was expected to remain above 2% in months to come but would then fall, he explained.
Kok report: he appealed to German CSU MEP, Alexander Radwan to provide a calibration between Member States. He also indicated that that the burden of proof was changed and when a measure was applied successfully by a Member State this burden of proof should not apply but that applying this was justified when a country failed in this respect. Asked by Pervenche Beres on the link with the SGP, he highlighted the need to priorities spending on growth and jobs but that spending the most did not mean being the most competitive. Asked about excluding certain spending (training, research, arms) from the Stability and Growth Pact, Trichet said with satisfaction that several governments opposed this.
He simply confirmed his position on other elements. On the subject of the euro/dollar exchange rate, Mr Trichet kept to the same declarations as those he had made during the G7 and G20 summits, stressing that the "recent exchange movements are not welcome". In answer to questions by Paolo Cirino Pomicino (EPP-ED/Italy) on the Chinese currency, he simply recalled that the international community had sent out a "clear message" to Asian countries in favour of "ordered and progressive" appreciation in some of their currencies. He then reassured the French Green member, Alain Lipietz, of good cooperation with the United States that wishes to reduce its deficit and carry out a strong dollar policy. He went on to say: "that what was announced during the G7 and G20 meetings are credible declarations".