00:00How should monetary policy makers, do you think, be reflecting on the news flow over the weekend?
00:06Thank you for having me. You know, Europe and the euro area have entered the phase of structural uncertainty.
00:14This has been driven by geopolitical and trade tensions of the sort we have seen in recent days.
00:21But on top of that, we face competing fiscal demands related to defence, climate and digital.
00:28Investments and the prospect of abrupt changes in the structure of our economies and labour markets.
00:36These are not big, small challenges.
00:40So, directly to your question, I think European Union institutions will increasingly be called upon to act as a stabilising actor.
00:52And this very much applies to the European Central Bank and to monetary policy.
00:56It would be great if Europe can continue this coordination of policies that we achieved in recent years,
01:07because really the challenges are very, very big.
01:12OK. So, monetary policy should act as a stabiliser, you think, Mario.
01:16What if European politics dictates that the Commission responds with retaliatory tariffs?
01:23How should monetary policy respond then?
01:24Well, you know, we have a mandate, which is price stability.
01:32Some of these policies and the shocks that we are facing, they have an impact on prices.
01:40So, the best thing that could happen for all of us would be to each dimension of economic policy to do exactly what is expected for it to do.
01:56So, monetary policy should continue to look for price stability.
02:03This is our mandate, but we do understand that it's very important for us to keep that in mind,
02:10that the coordination of policies helped us a lot to go through the COVID and inflation crisis.
02:19And these challenges that we face today are not smaller.
02:24So, we need to, I mean, expect that this, how I put it, this stabilisation anchoring from policy can really be on the table.
02:40So, Mario, in terms of that stabilisation of policy at the monetary policy level,
02:45if we do get to a point where tariffs are imposed between the US and Europe,
02:50should the ECB consider additional rate cuts this year?
02:54Well, it's all about inflation and financial stability.
03:01We want to have financial stability because it is a prerequisite of price stability.
03:10If tariffs really have an impact in prices that will take us to reduce cuts further,
03:23that that will be our job to do.
03:26So, the important thing here is to understand that each piece of these common policies in Europe
03:36play together in a way that delivers for us,
03:42because that's quite important for Europe,
03:45the stability we need to go through these very difficult moments.
03:50And we want to get to your candidacy, Mario,
03:55in terms of the European Central Bank vice president role.
03:58And, of course, you'd be representing in that role, should you get it, the southern Europe.
04:03What would you bring to the table?
04:05What kind of voice would you bring that doesn't exist right now at the ECB?
04:08Well, it will be a voice that brings all this experience of dealing with very difficult challenges,
04:20the financial crisis as a minister, then as a governor, COVID and inflation.
04:29And also a voice of consensus.
04:33This is probably my most well-known trademark is I'm thriving always to get a consensus in a council that works in a collegiate way.
04:48So, these will be my best credentials to the job.
04:55There will be your credentials.
04:56And how do you assess your chances, Mario?
04:58Are you confident, quietly confident?
05:01I mean, this is a very important day.
05:04It's up to the ministers, to the selection.
05:08I think the large pool of candidates is a good thing for Europe because there's plenty of choices.
05:20They are all my former colleagues.
05:24I have great appreciation for all of them.
05:26So, honestly, I think it's just that we should celebrate the fact that there are many alternatives around to be selected.
05:39And if each one of us concentrate on what are their specific characteristics and qualities to the position, that's, I think, what's important.
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