ECB confident in the Greek plan
No surprises from Frankfurt. The European Central Bank (ECB) on Thursday left its main interest rate unchanged at 1%. Earlier, the Bank of England also announced the continuation of its policy rate at 0.5%.
In March the Governing Council of the ECB "will take decisions on (…) a gradual lifting of the measures of liquidity [in support of banks] who are no longer as necessary as in the past," said Jean-Claude Trichet at a press conference.
Long awaited on the subject of Greece, Jean-Claude Trichet has held that the fiscal savings by Greece are "not in the right direction.""We are confident in the ability of Greece to take all actions necessary to achieve the objective" of a deficit below 3% of GDP by 2012, said President of the ECB cash till payday advance . No exceptions will be made for any area countries, "he said.
While Portugal and Spain in turn disturb markets, Jean-Claude Trichet reiterated that it was "crucial" that all countries "respect strictly the exit procedures for excessive deficits."
"According to the International Monetary Fund, the overall deficit of the euro area will rise to 6%", said Jean-Claude Trichet. "The United States will be at 10%, Japan is also at 10%.(…) A more flattering comparison for the euro area! Nevertheless, we show a complete lack of convenience in the direction of monetary policy, "he said. For 6% deficit, he said, a level still remains "unacceptable" and represents a burden.
"SPECIAL – Greece, a challenge for Europe