-ECB calls on European governments to reform fiscal rules.
Global Banking News-January 10, 2011--ECB calls on European governments to reform fiscal rules(C)2011 ENPublishing - http://www.enpublishing.co.uk
Global Banking News - 10 January 2011(c)2005 - Electronic News Publishing - http://www.enpublishing.co.uk
The president of the European Central Bank (ECB), Jean-Claude Trichet, has said that European governments need to tighten fiscal rules.
Hinting that the government had a bigger role in bettering economic conditions at European nations than the ECB, Trichet said that ECB policy could not substitute government irresponsibility. He said that the ECB must not be relied upon to get Europe out of its debt crisis.
Trichet said, 'Monetary-policy responsibility cannot substitute for government irresponsibility. Europe cannot afford to rest halfway, we need to be more ambitious. The proposals that we have seen in Brussels do not go far enough in the ECB's view. We should be inflexible in applying sanctions if rules are breached. In limiting the power of discretion, we will strengthen the power of the Stability and Growth Pact. There must be a binding code of conduct for all parties concerned.'
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