ECB chief assures euro creditability
(4 December 2010 – Europe) Jean-Claude Trichet, the chief of the European Central Bank, has said the euro remains "credible" despite the debt crisis that has plagued many of the union’s nations.
In the last year Greece, and most recently Ireland, have required bail-out packages to the tune of billions of euro, with the threat now extending to Spain.
A day after the ECB extended its special support measures for banks, Mr Trichet urged European governments to make a 'quantum leap' toward reforming and cleaning up budgets to avoid falling deeper into turmoil.
'This is no time for complacency," Mr Trichet added.
The Spanish government, determined to avoid seeking a rescue of its own, approved a new austerity plan Friday that will cut back a key jobless benefit and sell off stakes in the national lottery and airports.
The ECB, the European Union and the 16 governments that share the euro are struggling to contain a crisis caused by too much state debt in some countries.
Mr Trichet would not comment Friday on whether the ECB has increased its purchases of government bonds by highly indebted countries like Ireland or Portugal to ease their borrowing rates.
Mr Trichet hass insisted the 16-nation euro itself is not at risk.
'The euro is a credible currency. The euro is a currency that is considered just as credible for the next 10 years as for the last 12 years,' Mr Trichet said.
A day after the ECB extended its special support measures for banks, Mr Trichet urged European governments to make a 'quantum leap' toward reforming and cleaning up budgets to avoid falling deeper into turmoil.
'This is no time for complacency," Mr Trichet added.
The Spanish government, determined to avoid seeking a rescue of its own, approved a new austerity plan Friday that will cut back a key jobless benefit and sell off stakes in the national lottery and airports.
The ECB, the European Union and the 16 governments that share the euro are struggling to contain a crisis caused by too much state debt in some countries.
Mr Trichet would not comment Friday on whether the ECB has increased its purchases of government bonds by highly indebted countries like Ireland or Portugal to ease their borrowing rates.
Mr Trichet hass insisted the 16-nation euro itself is not at risk.
'The euro is a credible currency. The euro is a currency that is considered just as credible for the next 10 years as for the last 12 years,' Mr Trichet said.
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