BRUSSELS (MNI) – Ireland should take appropriate decisions
regarding its fiscal policy and banks, European Central Bank President
Jean-Claude Trichet said on Thursday.

Ireland is emerging from a deep recession and is grappling to
manage a huge budget deficit as well as a bailout plan for its banking
system which is likely to be at least E25 billion.

“I would encourage Ireland to continue to take the appropriate
decisions that it took with front-loading decisions in all domains,
including the fiscal domain,” Trichet told reporters at a press
conference after the ECB’s September meeting.

Trichet declined comment on Irish bond spreads or the particular
situation of some Irish banks, including Anglo Irish Bank, which some
commentators say should have been closed down rather than bailed out.

“It is the responsibility of the Irish government and the Irish
authorities to deal with their banks. I have confidence that they will
manage these difficulties as they have done in the past,” he said.

“If I’m not misled, [Anglo Irish] is a bank that it is owned by the
government, thus it is the responsibility of the government to take the
appropriate decisions,” Trichet added.

–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com

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