FRANKFURT (MNI) – The European Central Bank is there to prevent
second-round effects from high commodity prices, ECB President
Jean-Claude Trichet said in a German newspaper interview pre-released
early Saturday. (A partial pre-release Friday was reported at 17:00
CET.)
Trichet told Aachener Zeitung, according to the full English text
provided by the ECB, that it is not thinkable for a Eurozone member
state to exit the common currency.
Asked about rising inflation in the euro area, Trichet replied,
“The prices of oil and raw materials have risen worldwide. This is also
pushing up the consumer price index in the euro area. Our responsibility
is to prevent price-setters and social partners from increasing other
prices and wages in the medium term. We are there to prevent these
second-round effects.”
It is “entirely unrealistic” that a Eurozone country could stop
using the euro, Trichet said, noting the absence of any relevant
provision in the EU Treaty.
The ECB is insisting that there be no restructuring of Greek debt
because the EU/IMF program Greece does not envisage such a step, he
said.
To doubters on the street, Trichet said he would respond, “I think
it is certainly right to say that very strong conditionality is of the
essence, and that the loans complementing IMF financing must be
non-concessional.”
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
[TOPICS: MT$$$$,M$$CR$,MGX$$$,M$$EC$,M$X$$$,M$$G$$]
