Speech Herman Van Rompuy bij afscheid Trichet als voorzitter van ECB (en)
President of the European Council
Speech on the occasion of the departure of the President of the ECB
I shall not use this occasion to repeat all the good things I have to say about Jean-Claude Trichet. I did so, with great conviction, when he received the Charlemagne Prize in Aachen last May. Throughout the crisis, he has been our point of reference. His great achievements - in matters of management, analysis and action - will go down in history.
Instead, I would like to take the opportunity to draw some lessons from my experience in the euro area during the last twenty months. They are five in number.
First lesson: we cannot have a common currency, a common monetary policy, and leave everything else to the States involved. And yet this is what we have experienced. There needs to be a coherence of policies and institutions at the European level. If, right from the launch of the euro, we had had the instruments that we devised "on the job" in 2010 and 2011, we would have been spared a great many difficulties.
The second, and equally obvious, lesson: at a time of crisis, one must have the courage to take crisis measures. We cannot deal with a crisis by applying everyday methods alone. We should be able to use non-conventional methods, methods that are not to be found in economic textbooks.
Jean-Claude Trichet has had to work in an unfamiliar environment, in unexplored territory, in a " Neuland", to use that charming German expression. What he did, had to be done to save the euro as such. The objective is the important thing. The means for achieving it are not an end in themselves.
Third lesson: A central bank must of course be independent but it must also be transparent and intelligible. "Independent" does not mean "disconnected from political decision-making". Monetary policy cannot be conducted in a societal and political vacuum. A currency is key to the life of a modern society. The independence of the central bank is a right but it also involves duties. Jean-Claude Trichet - in the great French tradition of great public servants - has perfectly grasped this aspect of a central banker's role.
Fourth lesson: The euro area is as strong as the weakest link in the chain. We have all become so dependent on one other that we cannot afford continuing divergences within a monetary union. Each member of the euro area holds the fate of the whole euro area in their hands. I would stress that solidarity consists, therefore, not merely in receiving but also in giving. Solidarity is a duty. It is not a virtue, because a virtue is voluntary. Solidarity within the euro area is a matter of necessity and survival. A lax national policy is therefore contrary to the spirit of solidarity.
It should be asked whether solidarity requires the unanimity rule. It is dangerous to let the fate of the world economy depend on domestic policy squabbles within the parliament of one of the 17 countries, large or small. But at the same time, given the amounts that the national treasuries have to commit to (up to 9 % of GDP in guarantees in some cases), it is reasonable that the national parliament should ultimately have its say. This interdependence is a new phenomenon in a globalised world, which means that a very heavy responsibility is placed upon each of us.
Fifth lesson: The crisis in the euro area requires us to do more, in terms of both fiscal discipline and economic integration. This will come about through the new Stability and Growth Pact, as well as the Euro-Plus Pact. But we need to go further, and we need both fiscal discipline and economic and fiscal integration. Not only to punish the sinners but also to link our policies together, and demonstrate that we share a common destiny. We need to acknowledge that this means a loss of sovereignty for all, and not only for the countries in difficulty.
There you are: my five simple lessons.
The euro began as a political project, and so it remains. Admittedly, even the fairest and most inclusive ideal cannot survive without a sound and stable economic foundation. But nor should we forget the basic reasons for this enterprise, which - far beyond the question of money - stem from values, from that idea of peace, democracy and a social market economy which we call the European model. If we forgot that, we would be ready to turn our backs on it in times of rough weather. The great enemy of any project is the scheming mind that asks "What do I get out of it?" The "fair return", so to speak. The scheming mind is very much present nowadays. Those who say they want less Europe should be answered with more Europe. It's a slogan, but sometimes slogans are true!
All this was understood by Jean-Claude Trichet well before me. I would not presume to give lessons. A central banker, on the other hand, has to do so. In today's political world he has to play a role strongly resembling that of a constitutional monarch - as Walter Bagehot brilliantly put it 150 years ago: "the right to be consulted, the right to encourage and the right to warn".
My dear Jean-Claude Trichet: You have been called upon to play the latter role, of warning and alerting us, too often. It was your right, but also your duty. At the end of a career, we must be able to say that we have done our duty. You have reached that point in your life. It is the only way to have a clear conscience.
In the dozen or so days that remain before you come to that transitional moment, we still have work to do together, including a crucial summit of the euro area next Sunday. I am glad that you will be at our side during the difficult hours and days that lie ahead. We shall miss you. I shall miss you. On behalf of all of us, thank you for everything, Jean-Claude Trichet!