Thursday, 30 June 2011

Trichet Advocates A New European Confederation

Jean-Claude Trichet, President of the European Central Bank, spoke Wednesday of the need for a new European confederation of sovereign states during an open session of the European Parliament’s Monetary Dialogue in Brussels. The outgoing ECB chief was praised by MEPs for his steady tenure and was received gracefully despite his refusal to answer many of their Greece-focused questions.

Trichet repeatedly asserted the ECB’s role is concerned principally with the Euro-Zone’s 17 members, and with clear consideration for the EU’s 27 Member States. It is the role of the ECB to deliver economic stability, but it is not the Bank’s role to interfere with the sovereign decisions of individual Member States.

His confidence in the ECB’s work to date was illustrated with comparisons vis-a-vis the United States. Trichet used the example of the USA as a means to explain some good models to follow, especially in relation to the transparency of Government data. He established that the US model of federation is not appropriate for Europe, but that changes to Europe’s economic and political governance will be needed to ensure future economic stability.

Full Article: Trichet Advocates A New European Confederation

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