Tags: Trichet | ECB | End | Crisis

Trichet: ECB Did All it Could to End Crisis

Friday, 14 Oct 2011 12:32 PM

The European Central Bank (ECB) has done all it could to halt the spread of the European debt crisis and protect the financial system, and now it's up to governments to do their part, outgoing ECB President Jean-Claude Trichet says.

"I think that the ECB has done all it could to be up to its responsibilities in exceptional circumstances…The ultimate backstop is, of course, the governments. To do anything that would let governments off their responsibilities would be a recipe for failure,” Trichet tells the Financial Times.

Further economic integration among eurozone countries will be needed to end the current crisis and prevent new ones, says Trichet, whose eight-year terms ends later this month.

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Jean-Claude Trichet
(Getty Images photo)
"I think that we are experiencing history in the making. My sense is that no country, no individual, no leader will take the responsibility of going backwards. That’s the reason why I am confident."

Europe remains at risk of falling back into recession in wake of the debt crisis, caused by fears that Greece may default and take the continent's financial system down with it.

The ECB has cut interest rates and held them at 1.5 percent and some European monetary authorities say there should be no rush to raise them, as inflation remains at bay.

"I expect inflation to drop below 2 percent next year," says Jozef Makuch, Slovakia's central bank chief, according to Reuters.

"Negative gross domestic product can't be ruled out if downside risks materialize."

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The European Central Bank (ECB) has done all it could to halt the spread of the European debt crisis and protect the financial system, and now it's up to governments to do their part, outgoing ECB President Jean-Claude Trichet says. I think that the ECB has done all it...
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Friday, 14 Oct 2011 12:32 PM
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