Euro zone deficits must be cut from 2011 latest: Trichet

By IBTimes Staff Reporter | December 26 2009 8:08 PM

Banks must provide sufficient credit and governments in the euro zone must reign in public finances to support a global economic recovery in 2010, the President of the European Central Bank (EBC) said on Sunday.

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In comments made to the Bild am Sonntag weekly newspaper, Jean-Claude Trichet added that recovery from the financial crisis required concerted effort to offset joblessness.

Banks must perform their central role in the supply of credit to the economy... Handling the consequences of the crisis for the labor market and public finances represents an additional challenge.

Budget deficits in the euro area must be reduced by 2011 at the latest -- in some countries as early as 2010 -- in order to maintain confidence in public finances, he said.

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