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Intervention Cœuré Benedict, a member of the ECB Executive Board,
Alexandrine Bouilhet, Le Figaro, done April 4, 2014
Le Figaro:-The rise of financial markets is not it disconnected from economic reality?
Benoit Coeuré: Markets anticipate an economic recovery. This is a good sign, and we think they are right! This is not a bad thing to anticipate a recovery! At the ECB we believe that recovery is already there, but we know gradual and fragile and therefore we want to accompany it with even lower low interest rates over an extended period.
This increase does not she already makes bubbles?
Not in euro area, from our point of view. But in a period of very low interest rates, vigilance is required. If this risk materializes, supervisory authorities of the Member States have new instruments called "macroprudential", not to mention other macroeconomic measures.
The ECB is she really ready to move into quantitative easing (QE)?
Yes, there is unanimity in the Council of Governors to be prepared to use unconventional instruments, including this one, if the current period of low inflation extends more than expected. Today, it does not seem necessary, since the low level of inflation is due to temporary factors and we believe part to recovery: inflation should rise. But we will continue to monitor developments very closely and act if necessary.
What QE does it help the recovery of the credit?
This is the question! Although the QE means more liquidity in the banks' balance sheets, it is not sure that it creates credit. The ECB can not substitute for bank rehabilitation. Review of bank balance sheets that we conduct in 2014 will help. QE in Europe would necessarily be different from what is practiced in the United States.
In talking, Mario Draghi has lowered the euro. Why?
Market participants have now understood that the exchange rate is not an objective of monetary policy, but it is nonetheless an important variable in our decision, as it influences the evolution of prices . In times of low inflation, the effects of movements in exchange rates are subject to careful monitoring.
What would it take for the euro fell more?
If the euro is at this level against the dollar, it is also because the euro area recorded a surplus of its large current account - [note: 286 billion euros planned in 2014] - and is growing. This is new. Before, the current account of the euro area was rather balanced. This is because Germany, for example, exports too, as we hear sometimes, but because domestic demand in the euro area is depressed. From this point of view, the best response is to support domestic demand by investing, and it is also a way to prepare for the future of Europe! But these issues are beyond the exchange rate only European framework.
At $ 1.37, the euro is overvalued it not for France?
France is in a particular situation in the euro zone because it is the only country in the region to have a current deficit as important today - [note: 36 billion euros in 2013] -. Response through increased competitiveness, as provided by the Government.
France requested a new deadline for its deficits: Does the risk of sanction markets?
Expectations of Europe against France are strong, because it is the second largest economy in the euro area. The eurozone needs a strong France. France also has a responsibility to make credible economic government of the euro area it called for and gradually put in place. This provides governance objectives nominal and structural deficits. As recalled by the European Commission, France has already benefited twice deferred. It must meet its commitments. It is a question of credibility and trust.
France can do without the euro?
Without the European Union without the euro, France is an average power vulnerable because indebted and with declining productivity. The euro and Europe in France offer a protection that allows it to remain master of its destiny by managing her own reform process.