FRANKFURT (MNI) – European Central Bank President Jean-Claude
Trichet has refused to back the full package of sanctions agreed upon
earlier this week on Eurozone members whose debt breaches the limits of
the Stability and Growth Pact, the Financial Times reported late
Wednesday.
In a memo seen by the business daily, Trichet’s office said that
the report should say, “The President of the ECB does not subscribe to
all elements of this report”.
Furthermore, Trichet has demanded that the draft of the new rules
be retracted, as it does not make explicit note of the central banker’s
objections, the paper says.
The ECB memo was released following the deal between France and
Germany. As a result of the agreement between the two largest economies
in the monetary union, Eurozone members would not face automatic
sanctions if they were in violation of the stability pact. Instead, such
matters would need to be decided by vote. Sanctions would be applied if
a qualified majority of finance ministers voted to do so.
— Frankfurt bureau: +49-69-720 142; email: frankfurt@marketnews.com —
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