With the crisis still raging as his eight-year term at the helm of the ECB comes to a close, Trichet said the case for a common finance ministry has “strengthened” to improve economic governance in the 17-nation currency bloc.
“The euro area is responding to events of historical importance and it naturally takes time to forge consensus on the right way ahead”, Trichet said. For now, “first and foremost every country in the euro area needs to keep its own house in order”. From the ECB’s perspective, the central bank needs to fulfil its primary mandate of maintaining stable prices, Trichet said.
The ECB has also introduced a number of non-standard measures to address the crisis, including flooding the banking system with cheap cash to prevent a credit crunch, and buying government bonds on the secondary market.
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