Sponsored Links
The Eurozone economy is stabilizing, but the recovery is expected to remain "uneven", European Central Bank President Jean-Claude Trichet reiterated Thursday.
In his introductory statement after the central bank held its key interest rate at a record low of 1% for the fifth straight month, Trichet said, "Euro area economy is stabilizing and is expected to recover at a gradual pace. However, uncertainty remains high."
At the end of the Governing Council meeting in Italian city of Venice, which was also attended by European Union Commissioner JoaquÃn Almunia, Trichet said, "The current rates remain appropriate."
Annual HICP inflation, which continue to stay negative in September, is expected to turn positive again in the coming months and to remain at moderately positive rates over the policy-relevant horizon, Trichet said.
Further, he said the ongoing improvement in financing conditions should support the demand for credit in the period ahead. "Against the background of highly demanding challenges, banks should take appropriate measures to strengthen further their capital bases and, where necessary, take full advantage of government measures to support the financial sector, particularly as regards recapitalization."
With regard to fiscal policies, Trichet said the need for ambitious and realistic fiscal exit and consolidation strategies is becoming increasingly pressing. It is vital that governments put in place concrete structural measures and convincingly communicate that they are committed to ensuring the sustainability of public finances.
"Governments should design their consolidation plans in line with the provisions of the Stability and Growth Pact, ensuring that consolidation starts as soon as possible and at the latest when the recovery takes hold."
0 komentar:
Post a Comment