It is the financial stability of the euro area as a whole which is at stake, and this creates difficulties for our monetary policy transmission. Taking into account the reality of the situation we have reactivated a number of non-standard measures. Many people nonetheless fear that the continuous flooding of the markets with new money will lead to inflation in the medium term. This fear is totally unfounded. First the Securities Market Programme (SMP), namely the purchase of Treasuries on the secondary market, is not at all a quantitative easing programme. We are rigorously withdrawing all the liquidity which is provided. As regards all our non-standard measures, the balance sheet of the ECB has expanded by 77% since the beginning of the crisis; that of the US Federal Reserve System by 226%. This gives a measure of our relative prudence in this very grave crisis. And we are fully credible to deliver price stability over the next 10 years, according to observers and market participants. In the spring, the ECB spoke out against the restructuring of Greek debt which was being discussed at that time. Now there is again discussion of a debt restructuring. Does your opposition still stand? In the spring, the Governing Council of the ECB unanimously made the following points. We cannot accept the securities of a state in default, even for a short period of time, as collateral for the refinancing of banks without an appropriate credit enhancement. Similarly, we said that a credit event should be avoided.
Jean-Claude Trichet: Interview with Die Welt Interview with Mr Jean-Claude Trichet, President of the European Central Bank, conducted by Jan Dams and Martin Greive on 7 October 2011. *  *  *  WELT: Mr Trichet, at the time you took up office, did you think it conceivable that you would be dealing with such a serious crisis in the currency union? Jean-Claude Trichet: Even before the outbreak of the financial crisis, the ECB warned that it was highly likely that there would be major corrections in the financial markets. However, the fact that the crisis would call into question the whole economic and financial strategy of all developed economies was not quite so foreseeable. You have had to take harsh criticism of your crisis management from Germany. How disappointing is that for you? That reminds me of a Goethe quote: “Against criticism a man can neither protest nor defend himself; he must act in spite of it, and then it will gradually yield to him.” The ECB must accept the criticism. The only thing that matters is that we are faithful to our primary mandate and take our decisions fully independently. It is about precisely that that increasing doubts are being expressed. Under your leadership, the ECB has lost its independence because it has financed hard-up euro area countries by printing money. This criticism is completely inaccurate. We are fiercely independent of governments and pressure groups. All our decisions are made fully independently by the 23 members of the ECB’s Governing Council.