–Originally transmitted Thursday at 15:19 ET
FRANKFURT (MNI) – The European Central Bank has used all its
possibilities and will not be the ultimate backstop of governments of
the Eurozone, outgoing European Central Bank President Jean-Claude
Trichet said in an interview released Thursday,
Trichet, whose eight years are up at the end of the month, was
quoted indirectly by the Financial Times as saying that the ECB had
reached the limits of what it can do and would not be the lender of last
resort to governments.
“I think that the ECB has done all it could to be up to its
responsibilities in exceptional circumstances,” the paper then quoted
him directly. “The ultimate backstop is, of course, the governments. To
do anything that would let governments off their responsibilities would
be a recipe for failure.”
The E440 billion EFSF rescue fund could be leveraged to provide a
firewall, Trichet said.
Europe’s political leaders “have said very clearly that Greece is a
special case and that as regards all other countries, the goal was to
fully honour the signature of governments. I would say it is important
to avoid any ambiguity in this respect.”
The future of the euro is “evidently not in danger,” he insisted.
–Frankfurt bureau tel.: +49-69-720142. Email: dbarwick@marketnews.com
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