And secondly, because the Spanish parliament was prepared to approve some of the harshest and most difficult measures adopted in Europe to rapidly reduce the budget deficit. But the task is by no means complete and, therefore, the responsibility of Spain’s parliamentary forces remains of paramount importance. True, the countries that required financial assistance have more problems to resolve, but in their favour they have precise programmes of measures agreed with the International Monetary Fund and the European Union with which they must unfailingly comply. If they fail to do so, they will be withdrawn. They know perfectly well what they have to do and when they have to do it. In our case the responsibility is greater, since we ourselves must decide on the content and timeframe of the reforms and that means we must be capable of adopting the right measures for exactly as long and as intensely as required, and over a sufficiently short timescale so as to convey to all the firmness of our resolve to overcome the crisis. Let us turn to the most important and pressing tasks facing us: to bring about far-reaching change in the legal and institutional framework for employment, to comply with the deficit-cutting plan and to complete the restructuring of the financial system and the overhaul of savings banks. Nothing is more necessary for improving the well-being of workers and of all Spanish citizens than reducing the unemployment rate and raising productivity so that wages may grow at a higher rate.
In operational terms, this means that, in the conduct of their duties, neither the European Central Bank nor the national central banks of the Eurosystem may request or take instructions from the Community institutions, national governments or any other body. They are entirely institutionally, operationally and financially independent. Transparency and accountability are also essential for gaining credibility Naturally, the independence of these institutions requires transparency in their decisionmaking processes and accountability vis-à-vis the general public and their representatives. As regards new institutions such as the ECB, transparency is even more important for gaining credibility and building up economic agents’ confidence in the new currency. In order to establish this credibility and gain the confidence of agents, it is imperative to be understood, which in turn calls for transparency. For the sake of transparency, the Governing Council has specified and quantified its definition of price stability (inflation below but close to 2% over the medium-term). Second, the ECB has gone beyond the accountability requirements laid down by the Treaty by instituting regular testimonies by the President of the ECB before the European Parliament and regular informal meetings with the Eurogroup of Finance ministers. Another channel for transparency is constituted by the regular publication of reports on economic developments and Central Bank analysis, of the Eurosystem’s and ECB’s staff projections exercises, most prominently in the ECB’s Monthly Bulletin.