But the monetary policy of the Banque de France was backed by the people. Historically, what matters is that all future euro area countries, including France and Germany, cooperated very closely from the very outset to ensure convergence. Today, people throughout Europe are convinced of the importance of price stability. And they are also aware of the fact that being addicted to inflation is like being addicted to a drug that over time has extremely negative effects: stagnation and the destruction of jobs. FOCUS: Nevertheless, many experts are expecting prices to rise significantly again in the near future ... Trichet: We have made it very clear that we always take the decisions necessary to guarantee price stability over the medium term: an inflation rate below, but close to, 2%. Observers and market participants are fully aware of this. It is precisely because of the challenges posed by price stability that we stand ready for action at all times. I call that “credible alertness”. FOCUS: At the moment, the markets are addicted to cheap money – to low interest rates. Politicians, bankers and stock market traders have already become too used to this situation, and as a result the risk of inflation is on the rise. How do you intend to change this? Trichet: You can be sure that the European Central Bank will continue, as before, to maintain price stability. Keeping inflation expectations solidly anchored – in line with our definition of price stability – protects us against the materialisation of both inflationary and deflationary risks.
You have in this city and this region a combination of excellent cultural opportunities – both in music and in the visual arts – and a cosmopolitan milieu which is very cultivated. FOCUS: You come from Paris. Is Frankfurt not too provincial? Trichet: You will not be surprised if I tell you that Paris is unique! FOCUS: And Frankfurt? Trichet: When I arrived, I found I had underestimated three things. First, the range of cultural opportunities in the area. There are five opera houses within just 45 minutes of my flat: in Wiesbaden, Mainz, Darmstadt and Frankfurt. There are very few places in the world that can compete in this respect – perhaps New York, London and Paris. Second, the quality of what’s on offer is very high indeed. I was very impressed, for example, by the sculptures in the Messerschmidt exhibition at the Liebieghaus or the Picasso theatre sets exhibited at the Schirn. I hope that I will find time over the next few weeks to see the much-praised Botticelli exhibition at the Städel. Third, as I have said, people here are impressively cultivated, as I saw for myself when the ECB launched its own Cultural Days. FOCUS: What are the highlights of your work as a central bank president so far? Trichet: When Economic and Monetary Union began, many were sceptical about whether it would be successful or even possible.