FRANKFURT (MNI) – Eurozone member states must take decisive action
on fiscal consolidation to restore trust that adjustment efforts will
continue and that public debt will be sustainable, European Central Bank
President Jean-Claude Trichet said Thursday.
“The current environment is very demanding and requires decisive
action. Euro area countries must, as a minimum, comply with their fiscal
consolidation commitments for 2011 and beyond, as foreseen under the
respective excessive deficit procedures,” Trichet told reporters here.
“Adequate and more front-loaded adjustment should ensure that
structural fiscal consolidation targets are met” and that “better than
expected economic and fiscal developments should be exploited to achieve
faster deficit reduction,” he argued.
“The announcement of fully specified consolidation measures for
2012 and beyond is essential to convince the general public and
financial market participants that the corrective policies will be
sustained and that public debt developments will be put on a sustainable
path,” Trichet said.
–Frankfurt bureau; +49-69-720142; frankfurt@marketnews.com
[TOPICS: MGX$$$,MT$$$$,M$$CR$,M$X$$$,M$$EC$]
