Highlights: ECB's Draghi says euro is "irreversible"

Mon Dec 19, 2011 12:31pm EST
 
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BRUSSELS (Reuters) - Below are highlights of comments made by ECB President Mario Draghi in testimony to the European Parliament on Monday.

ON REMIT OF ECB

"The treaty specifies very closely what our remit is, namely ensure price stability in the medium term. The treaty also forbids monetary financing and ... we want to act within the treaty. I think that to take any other behavior, that would somehow, breach the treaty would also negatively effect the credibility of our institution."

ON BANKS' FUNDING CONSTRAINTS

"We know that banks experience now and will be experiencing, even more so, a very significant funding constraint, especially in the first quarter of 2012.

"Not only then. The whole year is going to be a difficult year for the banks.

"What we certainly want to avoid is that serious severe credit tightening that could induce a further slowdown of growth and a possible recession. We want to avoid that. If we can relieve the funding pressures, that's already a good part of our answer."

ON CREDIT RATING AGENCIES

"The two issues that are of particular importance are, first, the assurance of appropriate underlying methodologies and the transparency of ratings. And second, the reduction of hard-wiring of ratings in legislation and market practices.   Continued...