Trichet insists austerity drives will not dampen Euro growth
EUROPEAN Central Bank president Jean-Claude Trichet yesterday moved to quell concerns that Europe is facing another period of recession and renewed his support for reforms and deficit cuts to boost confidence.
“(For) growth, you must strengthen confidence, and that means having budgetary policies that are balanced and sustainable,” Trichet said.
State austerity drives and deficit cuts would not choke growth but rather restore confidence, he added, reiterating his opposition to Europe-wide debt issuance to spur growth.
Trichet said he does not believe Europe is facing another period of recession, adding: “At the global level it is clear we are experiencing a recovery which is confirmed particularly in the emerging world but also in the industrialised world.”