Monetary policy The euro should be at least as solid and stable as the best currencies of the European Union and therefore at least as solid and stable as the French franc in the past. This is what inspires the policy of the European System of Central Banks, the European Central Bank and its Governing Council. This is what is required by the Treaty and also by our fellow citizens, who want a new currency that is at least as solid as the French franc. And it is indispensable in order to preserve the competitiveness of the European economy, ensure low medium- and long-term market interest rates on a lasting basis and therefore favour growth, job creation and the fight against unemployment. BIS Review 62/1999  2  The stability-oriented monetary policy of the European Central Bank and of the European System of Central Banks is guaranteed by their independence, which is enshrined in the Treaty. It is buttressed by the support of European public opinion which, like French public opinion, is deeply attached to the stability of the currency. In the final analysis, an independent institution is always accountable to the public. In a world monetary and financial system characterized by totally free capital flows, confidence is the most precious asset: the confidence that we inspire in economic agents and French, European and international investors; and the confidence with which we are credited today, tomorrow and in the future.
The reason why we emphasize the importance of competitiveness indicators is therefore not only that cost containment is a necessary condition for low inflation. It also, and primarily, lies in the fact that in the European economy of today, which is governed by complete freedom of choice for consumers and complete freedom for businesses to choose where to invest, jobs will be created preferentially in economies that manage to contain their unit production costs and offer an environment that is as favourable as possible to business competitiveness. BIS Review 62/1999  4