François Villeroy de Galhau: ECB’s determination is high

Those steps the ECB performed at the last meeting signal that the bank’s determination to achieve a required inflation is quite high. Moreover, actions of the central bank show that the bank still has enough instruments to achieve its target. These opinions were expressed by the governor of the Central Bank of France François Villeroy de Galhau.

The ECB started new measures of stimulation, which include reduction of rates, additional volume of purchase by 20 billion euro, and expansion of purchases assets. Also the ECB projected to open cheap crediting for the banks.

Mr De Galhau said the ECB had very carefully examined all state of affairs before making a step. There is no lack of assets which may be purchased within the programme. De Galhau noted that expansion of asset purchase programme, including corporative bonds, would put a positive impact on business sector in the nearest outlook.

However, he said that the ECB could not fight against all difficulties alone. European governments should use the situation and possibilities of easy monetary policy to make reforms and implement measures of economic stimulation in their countries. De Galhau put France as an example, where the government could not find consensus with labour unions concerning reformation of labour codex, which assumed flexible working schedule and simple retirement of workers. France must look behind and follow the example of other countries, for example, Italy, where the same measures were adopted, supporting labour market and reduction of unemployment.