In his testimonial to the European Parliament's economic and monetary affairs, European Central Bank President, Jean-Claude Trichet reiterated his stance over subdued inflation pressures, assuring that fears over inflation spiraling out of control on the back of the exceptional measures adopted by the ECB to shore-up confidence and calm markets and indebted nations through bond purchases are entirely unfounded.

The debt crisis pushed the ECB to reverse the withdrawal of stimulus measures and introduce a bond purchase program, which Trichet assured that it's inline with the policy remit and the Governing Council sees that the decision and rates are appropriate. He said that they are doing what they see is appropriate in terms of monetary policy and explained that they are pulling out the money as they program is ongoing to ensure the euro area financial stability reiterating that this program will only last for a certain time.

Tricht said that the debt crisis and indebted nations' position to break the Stability and Growth Pact was a disgrace. He said that the pact should have been respected, it should be applied in terms of the rules and the consequences on nations that breach the pact, while assuring that there should be further governance and amendment to the pact once nations return to comply by the rules, saying we want a quantum leap for in terms of framework for surveillance.