By David Barwick

WASHINGTON (MNI) – There have lately been some positive data from
the Eurozone but caution remains appropriate, European Central Bank
President Jean-Claude Trichet said late Friday.

Speaking alongside Spanish Finance Minister Elena Salgado and EU
Commissioner for Economic and Monetary Affairs Olli Rehn following the
G-20 meetings at the International Monetary Fund, Trichet confirmed the
recovery but called for continuing prudence.

The recovery in Europe, Trichet said he reported to meeting
paerticipants, “remains uneven and I noted that we had to remain very
cautious, that the time was not for complacency.”

To be sure, he observed, “a number of soft data that we had in the
recent period … were for a large part over expectations … but I
remain very prudent.”

Trichet cited industrial orders, purchasing manager indices and Ifo
business sentiment as example of the positive data of late.

Asked following his introductory statement whether he saw Spain as
being at risk of a situation akin to that troubling Greece, Trichet
replied, “What I always say is that all countries in Europe without any
exception have a lot of work to do. Structural reforms will improve the
potential for growth. … From that standpoint I see no exception.”

He denied again ever having said he did not want the IMF helping
resolve the Greek problem.

“No, I have not said that we did not want the IMF,” he insisted. “I
always said we want the European government, we want the EU Commission
because we share a destiny in common when we belong to the euro area.”

He continued: “I’m very happy to cooperate with the IMF … . We
have always appreciated enormously the expertise fo the IMF … . The
main message of the ECB has always been we must have the European
government totally responsible, as they are according to the Treaty.”

Trichet said in the context of Estonia’s goal of adopting the euro
that “we insist always very much ourselves on the fact that the Treaty
itself says that the meeting of the criteria must not be done on a
snapshot, but on a sustainable basis. And this is an absolutely key
element in the decision that we must make.”

Commissioner Rehn, who also noted the “uneven pace” of the economic
recovery in Europe, called on Greece to “intensify preparations and
adoption of concrete measures for” 2011 and 2012.

The EU Commission is “working very actively with the IMF and the
ECB,” he said so as to prepare for activation of the Greek aid
mechanism, which he said could be done swiftly.

“We should be able to complete the work by early May … on the
joint program,” he said. “I want to underline finally that this is not
only a matter of Greece, but also financial stability in the euro area
as a whole and also globally, and therefore it is very important that we
succeed in this exercise as we will succeed.”

— Frankfurt bureau tel.: +49-69 720142. e-mail: dbarwick@marketnews.com

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