ROME (MNI) – The European Central Bank does not agree with some
aspects of the planned reform of the EU Stability and Growth Pact, ECB
Executive Board member Lorenzo Bini Smaghi said Friday, urging all
countries to adhere to the existing fiscal rules.

We are not in agreement with all of the points” of the reform,
Bini Smaghi told reporters after his speech to a conference here. Some
parts are weak.

The central banker also stressed that the ECB would not precommit
to the timing of its exit strategy, including the unwinding of liquidity
supports. We will decide based on the situation, he said.

Bini Smaghi said the economic recovery in the Eurozone was
proceeding as expected — at a moderate pace with some bumps.

The US recovery is also going much as expected, he said. That does
not mean that it is in line with hopes, he added. For both the
Eurozone and the US, it is not easy to get [growth] higher after the
crisis we had.

— Frankfurt bureau: +49 69 720 142; E-mail: frankfurt@marketnews.com —

[TOPICS: M$$EC$,M$X$$$,MT$$$$,M$$CR$,MGX$$$]