LONDON (MNI) – European Central Bank President Jean-Claude Trichet
reiterated tonight that the EU’s rescue plan for Greece remained a good
one and lived up to the ECB’s ‘main message’ on the issue.
Speaking to CNBC TV, Trichet said that the Greek rescue plan lived
up to the ECB’s message – that it is the responsibility of EMU
governments to take charge of the fiscal surveillance of one another’s
policies.
“I said that I consider the document which was signed by the 16
heads of state and government in Brussels at the end of last month as
very important and meeting our main message and our main message was –
you have – according to the treaty the responsibility of surveilling your
peers and there was a temptation to forget that and to forget this
responsibility which is nothing but recognizing that inside the euro area
we share a destiny in common.”
“In that respect, this accord is a good one”.
Trichet reiterated that he saw no default risk for Greece, despite
recent trends in market pricing:
“I would say that it is not at all an issue I would consider having
any pertinence,” he said.
The ECB president refused to clarify how the plan would work if
Greece were to be obliged to resort to it. The issue of whether
governments would provide funding in an emergency to Greece at current
market spreads or at a subsidised rate was an issue for EU governments
to decide, Trichet said.
–London newsroom: 0044-207-634-1624: email: ukeditorial@marketnews.com
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