FRANKFURT (MNI) – European Central Bank President Jean-Claude
Trichet has said he supports German-Franco proposals for greater
economic coordination in the Eurozone, according to an interview with
German regional newspaper Weder-Kurier published Sunday.
“We are calling for a significant improvement as compared to
governments’ previous positions,” Trichet told the newspaper. Words are
no longer enough and action must follow now, he added.
Trichet reiterated that the euro is credible and has a proven track
record of ensuring price stability. “Now it is time for the economic
union to function equally well,” he said.
The Franco-German proposal calls for new economic co-ordination
rules under a “pact for competitiveness” that would include the
abolition of salary indexation systems, greater harmonization of member
state corporate tax rates as well as harmonized and higher retirement
ages.
The proposal, presented at the EU summit earlier this month, has
met fierce criticism from other Eurozone member states.
–Frankfurt newsroom +49 69 72 01 42; Email: Frankfurt@marketnews.com
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