Trichet Comments On Greece, Inflation, the Euro vs Dollar and EMF
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European Central Bank President, Jean Claude Trichet talked with FOX Business Network about the debt crisis in Greece, Inflation in Europe, the euro against the dollar, and a proposed EMF.
Trichet believes that the government in Greece has done the right thing and that it will show the markets that the country's economy is "moving in the right direction."
"Really courageous measures have been taken by the Prime Minister and the government," Trichet said of the actions taken in Greece. "We called for this measure. It was a good set of measures, a convincing and courageous set of measures."
He went on to say that it is not the responsibility of the ECB to bailout a struggling nation and it will be on the governments in Europe to come to the aid of a struggling nation.
"They (the governments in Europe) have said in their summit that they stood ready to do whatever was necessary to maintain financial stability in the Euro area. I stick to that statement myself."
On the euro, Trichet said that the currency has delivered on the promises that were made when it was incepted 12 years ago, but he did not say there is any want from the ECB for the euro to become the global reserve currency.
"We did not create the euro against the dollar, we'd be totally stupid. We created the Euro for the single market. I have the best possibly relationship with the Federal Reserve. Without our very close cooperation, we would not have coped with the dramatic crisis we coped with. The Euro is for Europe, we don't have any battle with the Dollar."
The ECB, according to Trichet is well positioned to combat any risk of inflation in the Euro zone.
"We are absolutely determined to preserve price stability. We are permanently alert. Our interest rates are appropriate."
On a proposed European Monetary Fund, Trichet said that there has been a proposal made by the Minister of Finance of Germany but to call it a monetary fund would be misleading. He said that the ECB is looking into the proposal but it will be up to the governments in the Euro zone to decide what best to do with some countries that have special problems with their financial systems.
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Video Two:
Trichet believes that the government in Greece has done the right thing and that it will show the markets that the country's economy is "moving in the right direction."
"Really courageous measures have been taken by the Prime Minister and the government," Trichet said of the actions taken in Greece. "We called for this measure. It was a good set of measures, a convincing and courageous set of measures."
He went on to say that it is not the responsibility of the ECB to bailout a struggling nation and it will be on the governments in Europe to come to the aid of a struggling nation.
"They (the governments in Europe) have said in their summit that they stood ready to do whatever was necessary to maintain financial stability in the Euro area. I stick to that statement myself."
On the euro, Trichet said that the currency has delivered on the promises that were made when it was incepted 12 years ago, but he did not say there is any want from the ECB for the euro to become the global reserve currency.
"We did not create the euro against the dollar, we'd be totally stupid. We created the Euro for the single market. I have the best possibly relationship with the Federal Reserve. Without our very close cooperation, we would not have coped with the dramatic crisis we coped with. The Euro is for Europe, we don't have any battle with the Dollar."
The ECB, according to Trichet is well positioned to combat any risk of inflation in the Euro zone.
"We are absolutely determined to preserve price stability. We are permanently alert. Our interest rates are appropriate."
On a proposed European Monetary Fund, Trichet said that there has been a proposal made by the Minister of Finance of Germany but to call it a monetary fund would be misleading. He said that the ECB is looking into the proposal but it will be up to the governments in the Euro zone to decide what best to do with some countries that have special problems with their financial systems.
Video One:
Video Two:
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