Trichet wants to adjust the belt-tightening

According to Trichet, friendly intervention, the ECB aims to balance in circulation of money.

In brief: However, Trichet, the ECB has rejected criticism of the program to repurchase government bond and support the bond market. Programme support market commitments should not be confused with an increase in money supply. We do not print money, - said Trichet.

In the European Union we should have a supranational regulation, which will monitor the budgets of Member States regarding their compliance with applicable financial regulations, to avoid repetition of fiscal and debt crisis. This statement was made today by president of the European Central Bank Jean-Claude Trichet.

According to the banker, the existing legal acts, you can create such a body control and monitoring. “Monitoring of fiscal policy, the competitiveness of the economies of the eurozone, as well as projects of structural reforms should be substantially improved,” – he said. “Eurozone countries constitute a monetary federation. Now we need to create a kind of fiscal federation, where fiscal policies of member countries will be controlled by a single body,” – said Trichet. To do this, he said, there is no need to change existing treaties. Trichet also supported EU plans tighter controls over economic policies in the Union. Previously, several high-ranking EU officials have called for anti-national budget overruns, heralding the need for closer coordination of economic policies to save the single European currency. The draft law provides for the scrutiny of the budgets before as the main financial documents will go for approval to Parliament, as well as the imposition of severe penalties for failure to comply with accepted standards. Trichet said he was surprised by the fact that this initiative was criticized, particularly in France.

Anrey Torbinski
2010-05-31 14:14, Economics.

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