Trichet continues to warn of the threat of dependency on ECB liquidity by European banks and says there is the ECB is not bound to unwind non-standard measures before hiking rates.
Sounds like a fairly empty threat to me, but clearly the ECB is uncomfortable propping up zombie banks forever…
Trichet also says he has grave concerns about amendments to European fiscal rules. He says the ECB calls for a “quantum leap” in fiscal governance.
