BUSINESS

ECB chief Trichet urges budget discipline in Eurozone

The European Parliament on Monday expressed broad support and full confidence in the way that the European Central Bank (ECB) is handling what he says it the worst financial crisis since the Second World War. Addressing a packed committee-room in Brussels, ECB chief Jean-Claude Trichet reiterated his view on the need for even more stringent budget reforms in the countries that have adopted the euro, Wall Street Journal informs. Responding to concerns about a possible lack of liquidity in the Eurozone, Trichet said that this simply was not a possibility because of the immense volumes of money that circulates in Europe.

Trichet said that buying troubled bonds in the open market does not clash with the ECB’s goal of keeping the cost of living in the Eurozone under control, something that the central bank has successfully managed since the euro was created. The ECB chief said that uncertainty in the markets remains high, which means the European central bank will continue to offer its support. Trichet called on Eurozone governments to rapidly implement the agreement they reach in July about a second bailout for Greece and that more swift actions will be necessary in the future.

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