Trichet: It is of key importance that the ECB’s independence is guaranteed by an international treaty and not just by national law. National laws can be adopted, but they can also be overturned again. FOCUS: Nevertheless, time and again the heads of state of some countries try to pressure the ECB into decisions – usually the lowering of interest rates. Trichet: I remember well that in 2004, shortly after I took office, the then German, French and Italian heads of state or government made public remarks to the effect that the ECB should reduce interest rates. We didn’t do it. FOCUS: Now, in a reversal of roles, the ECB must put pressure on many European governments. National deficits have increased so drastically as a result of the financial crisis that all EU Member States are violating the debt ceiling put in place by the Maastricht Treaty. Trichet: The Stability and Growth Pact is a fundamental economic pillar of Economic and Monetary Union. We will always call upon national governments to comply with it. FOCUS: Greece is currently brazenly violating the 3% debt limit, with its budget deficit standing at 13%. Is Greece showing you a lack of respect? Trichet: Greece has not respected the Stability and Growth Pact. Not only Greece, but also other countries – that goes without saying – must do everything they can to put their national finances in order, bringing them fully into line with the provisions of the Stability and Growth Pact.
BIS Review 7/2010  3  FOCUS: This problem will become even bigger if other countries – such as Bulgaria or Romania – introduce the euro. Trichet: Other European Union countries are indeed committed to joining the euro area. But only when the time is right. As you know, there are strict criteria governing the introduction of the euro, and these must be met in full. And they have to be met not just at a particular moment in time, but on a sustainable basis. The ECB is and will remain extremely vigilant in this respect. FOCUS: But what if new member countries doctor their figures – as Greece did – and trick their way into the euro area? Trichet: Let me be very clear on this. Never again will we accept budget figures that do not reflect the facts. Appropriate auditing must always be possible. As early as next month the European Commission will make proposals that will dramatically improve the relevant framework. This is absolutely critical. FOCUS: Your job and the crisis are both very demanding. Do you have the opportunity at all to see colleagues outside of work? Trichet: Yes, certainly. And that’s important, too, as the high level of mutual trust that exists within the ECB, between the members of the Executive Board and the Governing Council, is in my view absolutely fundamental. FOCUS: Is Frankfurt a good location for meetings outside of your official schedule? Trichet: I think so.