Trichet says EU needs stricter budget deficit rules

In a T.V. interview on Sunday with the President of the European Central Bank Jean Claude Trichet, following the G20 meeting in Paris, he stated that the EU is in a need of stricter budget deficit rules to avoid the spread of debt contagion from one country to another.

Trichet said it is necessary to change the treaty to prevent one member state from straying and creating problems for all the others."

He clarified that after what had happened to many euro area economies on the back of the European debt crisis, he expects rules to become firmer in the future even without any amendments in the treaty.

Finally, he referred to the need of stronger global governance to combat crisis.

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