Interview for the Correio da manhã newspaper on December 14th
The EMU is not complete, we still don’t have a Banking Union
“The evaluation [of the implementation of the EMU] is positive, but I am not fully satisfied about the results, considering that some have not been achieved. The Economic and the Monetary Union is not complete, we still don’t have a fully-fledged Banking Union. We have fiscal discipline rules, but not a Fiscal union”
The ECB’s intervention is positive, but it can’t hold all the responsibility
“The ECB’s intervention launching a very expansionary monetary policy is necessary because we were in a serious risk of deflation. Deflation is even harder to control than inflation and the objective of the ECB is to provide price stability”, he said, adding that it is up to the governments to find mechanisms which allow the consolidation of the budget of each member state.
Instrument for the budget politics
“Monetary policy is necessary, but this instrument is oriented to reduce inflation. Other economic policy objectives, are in the hands of governments, and that is why the ECB can’t be the only one to work”. “There is a need of more fiscal policies instruments, and this needs to be discussed”.