Jean-Claude Trichet, the President of the European Central Bank has made a statement after the recent developments with regard to the tensions happened in some financial markets in the euro area. The President of the ECB reaffirmed what the Governing Council agreed on the 4 of August, its support to the economies of the euro area.

The President of the ECB, Jean-Claude Trichet, welcomed the announcements made by the governments of Italy and Spain concerning new measures and reforms in the areas of fiscal and structural policies. He also added that the Governing Council considers a decisive and swift implementation by both governments as essential in order to substantially enhance the competitiveness and flexibility of their economies, and to rapidly reduce public deficits. In addition, he reminded the importance of the commitment of all Heads of State or Government to adhere strictly to the agreed fiscal targets, as reaffirmed at the euro area summit of 21 July 2011. A key element is also the enhancement of the growth potential of the economy.

Mr Trichet has also underlined that it is fundamental that governments stand ready to activate the European Financial Stability Facility (EFSF) in the secondary market, on the basis of an ECB analysis recognising the existence of exceptional financial market circumstances and risks to financial stability, once the EFSF is operational. Furthermore, the ECB will actively implement its Securities Markets Programme. This programme has been designed to help restoring a better transmission of our monetary policy decisions – taking account of dysfunctional market segments – and therefore to ensure price stability in the euro area.

On its statement, the President of the ECB stressed the decisive importance to the declaration of the Heads of State or Government of the euro area in the inflexible determination to fully honour their own individual sovereign signature as a key element in ensuring financial stability in the euro area as a whole.