BRUSSELS (MNI) – The Eurozone’s E440 billion fiscal support fund
needs to be accompanied by decisive government action to bring down debt
and deficit levels, European Central Bank President Jean-Claude Trichet
said on Thursday.
At a meeting on Monday, Eurozone finance ministers finalised the
details of that facility that any of the 16 members can tap in to if
needed. If tapped, the fund would issue debt to finance loans to assist
troubled member states.
“The Governing Council welcomes the recent decision by euro area
countries to formally establish a European Financial Stability
Facility,” Trichet told reporters at a press conference.
“This needs to be accompanied by decisive action at the level of
governments. It is essential that all countries stick to their
commitments to correct high budget deficits and government debt and
reduce fiscal vulnerability,” he said.
“The concrete adjustment measures needed to achieve the budgetary
targets should be fully specified,” he said. “All countries must ensure
that confidence in the sustainability of public finances is guaranteed.”
He said the ECB welcomed governments’ commitment to “take
additional measures, where needed, in order to ensure the achievement of
the budgetary targets for 2010 and beyond.”
“It is indeed key that the new budgetary targets be achieved,” he
said.
Trichet was speaking at a press conference after the ECB Governing
Council decided at its monthly monetary policy meeting to leave its key
interest rate unchanged at 1.0%. The rate has been at this level since
May 7, 2009. The next rate-setting Council meeting will be held July 8.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$X$$$,M$$EC$]
