ECB’s Bini Smaghi in an interview with an Italian newspaper has said that Greece must take steps to ensure it improves its debt rating by the end of next year. He told the paper “From our point of view, Greece needs to put in place as soon as possible measures that allow its government bonds to recover an A rating by the end of 2010.”
Regarding government spending in general; the official said that with a fragile public debt situation, additional budget measures “from now on, would do more harm than good. There needs to be structural reform.”
Bini Smaghi also called on banks to use profits to reinforce their capital base.
