The ECB President Jean-Claude Trichet met with MEPs on 29 of August at the European Parliament in order to explain the recent measures taken in response to the intensification of the crisis early August. In addition, the MEPs highlighted that the economic governance 'six pack' remains the base on which to build long term economic stability

The Economic and Monetary Affairs Committed held an extraordinary meeting on 29 of August after EU banks and bond markets took a battering throughout most of August. At the meeting, MEPs discussed the current economic situation with ECB President Jean-Claude Trichet, Eurogroup President Jean-Claude Juncker, Economic and Monetary affairs Commissioner Olli Rehn, and ECOFIN President Jacek Rostowski. Mr Trichet was one of the most awaited guest. He made a speech in which he stressed that the ECB expects from governments strict respect for the principle of budgetary discipline and effective mutual surveillance. He asked to governments to be backed by concrete measures. This applies to both the IMF/EU adjustment programmes and the renewed commitment of all euro area governments to the agreed fiscal targets. Also to accomplish the full and timely implementation of the 21 July agreement because it is the essence in this respect.

The ECB President also stated that the Governing Council of the ECB is determined to ensure that inflation expectations continue to be firmly anchored in line with their aim of keeping inflation rates below, but close to, 2% over the medium term. That was the answer to the question raised by the MEP Marta Andreasen, in which she wondered whether it was not opportune to cut interest rates by a full 1% to get the EU's economies going again.

Additionally, Mr Trichet explained that the ECB resumed government bond market interventions within its Securities Markets Programme (SMP) in August. Via its securities interventions, the ECB Governing Council aims at helping to restore a more appropriate transmission of its monetary policy stance in an environment in which some market segments are dysfunctional. According to this, the interventions do not influence the monetary policy stance. The ECB re-absorb the liquidity injected in order to sterilise the impact of these interventions on the liquidity conditions in the banking system.

On the other hand, most of MEPs stressed the importance of keeping a long-term economic governance throughout the 'six pack' law proposal whose final vote was postponed. However, some MEPs raised concerns regarding competing plans for long term economic governance. The Minister Rostowski declared that the conclusion of the 'six pack' would be a Polish Presidency priority.