FRANKFURT (MNI) – Eurozone governments, including Italy, need to do
more to get their deficits under control and boost structural reforms,
European Central Bank President Jean-Claude Trichet said Thursday.
“This means additional and more front-loaded fiscal adjustment
measures,” Trichet explained, stressing that it was essential for all
governments to “adhere strictly to agreed fiscal targets.”
“The common aim should be to put public debt ratios and finances on
a sustainable path as soon as possible,” he said.
“All countries must permanently be ahead of the curve,” Trichet
said. “Particularly in the case of Italy, structural reforms appear to
be particularly important, as well as front-loading of fiscal measures.”
“It is urgent for all — and for Italy, of course,” he said.
Spreads on Italian government debt have risen sharply as investors
have turned their attention to the country with the second-highest debt
ratio in the Eurozone.
This has put pressure on Italian Prime Minister Silvio Berlusconi
to bring forward some of his plan for E48 billion of budget cuts, most
of which have been scheduled for after 2013, when the next election is
due to be called.
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