BRUSSELS (MNI) – Heavily-indebted Greece should learn from Eurozone
counterpart Ireland, which acted well to redress its budget deficit,
European Central Bank President Jean-Claude Trichet said on Thursday.
Greece is grappling to manage a E300 billion debt mountain and a
budget deficit that is – at 12.7% – more than four times the EU’s
stipulated 3% limit.
“I don’t want to elaborate more on Greece…Let me only say that
Greece has a role model, and that is Ireland,” Trichet told lawmakers in
the European Parliament. “Ireland took very seriously its problems,” he
said.
He said the austerity plan being implemented by Greece’s government
was “convincing and courageous.”
“We cannot say that difficult times are over,” Trichet said. “We
have to remain fully alert.”
Better economic governance “is of the essence,” the ECB President
said. “We must absolutely reform the financial markets, very, very
profoundly,” Trichet said.
Asked by one lawmaker if he would begin to disclose the minutes of
the ECB’s Governing Council meetings, he said he didn’t think it was
appropriate because the ECB wanted to speak with one voice — as a
college rather than a collection of individuals.
“We don’t give the names of those who are voting for this and those
who are voting for that,” Trichet said. “We are the most transparent of
everybody in this world,” in terms of communication, he said.
He said the ECB would continue to deliver price stability, in line
with its mandate.
“I must stress this, every member of the Eurozone knows that
average inflation will be less than 2% or close to 2% in the medium and
long term…they should not just look at national inflation, that would
be different from what we guarantee,” Trichet said.
Trichet was referring to the ECB’s price stability goal, which is
an EMU inflation rate of just below 2% over the medium term.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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