TRICHET WANTS BUDGETS BALANCED

ECB President Jean-Claude Trichet believes that in this phase it is essential for budgets to be balanced. “There is no doubt,” he said, ” that there is an urgent need to implement credible medium-term balancing strategies”. “We expect,” he added, “governments to confirm their determination to balance public expenditure. it is time for sustainable budgets. We are experiencing unprecedented fiscal deterioration.” Trichet criticised stimulus packages presented last year at a global level. “We can see now how counterproductive it was to simply encourage stimulus at all costs.”