Europe Economy

ECB's Trichet: Euro Will Hold Value Over Next 10 Years

Reporting by Silvia Wadhwa, Writing by Antonia van de Velde

Jean-Claude Trichet defended his run as European Central Bank president in an interview with CNBC on Thursday, saying the bank had delivered its key objective of price stability and that the euro was here to stay.

Jean-Claude Trichet
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"The markets are expecting not only that the euro will be here in the next ten years, but that it will keep its value in the next ten years. The inflation expectations for the next ten years are fully in line with our definition of price stability," he said.

"Inflationary, we are below what has been observed during the last 50 years," he said.

"We will do all that is necessary in the future, depending, again, on that primary goal which is very important for confidence and for sustainable growth," he said.

"The central bank will continue to be totally faithful to its mandate...we have a very strong message for governments and for parliaments which is to reinforce as much as possible the governance of Europe. The governance of the euro area in particular," he said.

Trichet held his last press conference as president of the European Central Bank on Thursday before Italian Central Bank Governor Mario Draghi takes over.

The ECB left rates on hold at 1.5 percent, but Trichet said the economic outlook remained subject to "particularly high uncertainty and intensified downside risks."

He also said the ECB would provide struggling banks with longer-term liquidity to fend off a new credit crunch.