During the meeting of the Committee on Economic and Monetary Affairs (ECON), MEPs and Mario DRAGHI, President of the European Central Bank (ECB) debate on the Monetary Dialogue. Ambiance shots of the arrivals, address by Mario DRAGHI, President of the European Central Bank, questions and answers.

Brussels

meeting

GUALTIERI, Roberto (S&D, IT)

DRAGHI, Mario (IT)

monetary dialogue with the ECB (T)

Committee on Economic and Monetary Affairs

(04) Monetary Dialogue with Mario DRAGHI, President of the European Central Bank: questions & answers (17:23 - 17:31)

SOUNDBITE (English), Roberto GUALTIERI (S&amp;D, IT), Chair of the ECON Committee, Thank you. I apologize with the remaining colleagues that we have to stop here their questions and try to President Draghi try to be as short as possible. Thank you.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, Thank you Chairman. First first question I tried to take note but of course me may feel in responding to a question as we'll try not.First question is monetary policy the only main tool for the recovery and for consolidating the existing growth. The answer is No. Of course we need. I've been saying this now for I guess you must be tired of hearing me say this that I've been saying this for the last five years. The structural reforms are of key importance to consolidate growth on a sustainable basis.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, Second point there isn't any currency war I would talk about the worries of the Governing Council are about the increasing volatility and this and they're worried about this increasing volatility might cause an unwanted tightening of our monetary policy over financing unwanted tighten financing conditions in the eurozone.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, The other point is about the use of the of the profits by the ECB. Now this is a political decision and it does require if what is meant is that that rate transfer of profits from the ECB to the budget to the Union Budget this does require an amendment of the statute of the ECB. One of the options proposed by the Commission in its communication of the multiannual financial framework is to transfer an amount corresponding to a share of the net profits arising from national central bank's shares in the euro area monetary income paid out to national treasuries through the EU budget.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, In other words the ECB makes the profits the profits are distributed to the national central banks the national central banks give these profits. Not not in the same to the same extent not in the same way to the national budgets. And then what is being suggested a national budget transfer to the EU budget and this is represents national contribution by member states. The EU budget. So they are not related to the ECB policy for allocating its profits as defined in the statute of the ECB and of the ECB. They are about the macro prudential measures undertaken by the National Bank of Belgium the Central Bank of Belgium. We we support these measures 100 percent. We've been in favor of macro prudential measures to address known systemic systemic situations where the asset prices are asset valuations are stretched and certainly the Central Bank of Belgium has been at the forefront of this action and the ECB does support this action. On on the ECB on the CCD The question is what is the role that we see of course. Yes May as the dominant supervisor here.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, And so the ECB needs to monitor the specific risks the CCP is posed to the transmission of its monetary policy and the functioning of the payment system. And this would include specific for example in responding to your specific question report specific reporting requirements information requests. Ardoch stress testing that will differ from those conducted by the prudential supervisors including Nesma. So we wouldn't of course coordinate closely with Isma to eliminate duplication and ensure appropriate information sharing. As I said as my remains the predominant supervisor in exceptional situation ECB will need to be able to intervene quickly and directly situations of acute market stress are when CCP is are most likely to channel or amplify liquidity stresses in the financial system and volatility on bond markets. Notwithstanding the existence of robust regulatory frameworks such as Emir with which CCP must comply CCP is typically enjoy a lot of discretion in their risk management especially in crisis. So given their potential systemic impact on financial stability monetary policy this discretion should be exercised under the control of supervisors and central banks including the ECB for euro denominated clearing activity so the ECB should have the powers that are necessary to to undertake this action and with it of course always strictly within its mandate.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, On the questions about Greece it's pretty clear that the longer and the more dramatic it's been a recession this law works being the progress of the rate of inflation towards its objective. it's truing in Greece has been true in other countries. They can't the continued improvement in the situation however should strengthen the confidence that this objective will be will be will be reached. But we should remember that the ECB objective is not a country's rate of inflation but is the inflation the HHC P for the whole of the eurozone only auctions the institutions. We will assess the process set in in the early March in two weeks time on the Sustainable Finance.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, We certainly we we are party to the Paris climate agreement and the ECB supports the general economic policies and the aims of the Union. It does recognise the challenge posed by climate change and the importance of policies aimed at addressing it. Of course the. Even from a central banks perspective the increase in frequency and severity of natural disasters could pose considerable risks to financial stability. We must consider the correct pricing and supervision of climate related race as key to preserving financial stability and promoting sustainable growth. So we support the ongoing work in various international fora. We welcome the recently published Final Report of the High Level Expert Group on Sustainable Finance. We are also supportive of the proposed development of a common EU Sustainable Finance taxonomy but at the same time it's also important that any potential change to regulatory frameworks are prudential regulation to reflect climate change is justified.

SOUNDBITE (English), Mario DRAGHI, President of the European Central Bank, From a prudential perspective and does not undermine our primary purpose namely the achievement of our target our objective.

SOUNDBITE (English), Roberto GUALTIERI (S&amp;D, IT), Thank you very much to President Draghi for this very interesting an important exchange of views. Our monitary next monitary dialogue will takes place at around may still yet to be confirmed exact data we can conclude here. Thank you.