On Thursday, Lucas Papademos, Vice President of the European Central Bank, in a speech at the 7th European Business Summit, stated that "reduced confidence in the prospects of the economy and the soundness of the financial system" have led to the severity and duration of the current economic and financial crisis, however economic recovery with sustainable growth can be achieved through "financial system reform and sound fiscal policy." In particular, and much like the issues related to reforming regulatory oversight stressed last week by Treasury Secretary Geithner before the Council on Foreign Relations and Congress, Mr. Papademos stated that there is a "great an urgent need to introduce reforms that prevent the reoccurrence of episodes of financial market excesses and corrections that will make the global financial system more resilient to shocks." However, also emphasized that it is necessary to "strike[s] the right balance" between government financial intervention to right the economy and the need to preserve the sustainability of public finances which is "key to the long term performance of the economy." Much like the Federal Reserve, the ECB is wrestling with the question whether further easing of monetary policy will both contain potential disinflation and spur economic activity. In order to support sustainable growth, employment creation and financial stability, Mr. Papademos stated that the ECB's monetary policy should "ensure inflation expectations" are close to or below 2%. However, at the same time, the ECB's monetary policy aimed at "containing disinflation risks" must be "implemented in a manner that also ensures the preservation of price stability over the long term."