PARIS (MNI) – In the wake of Standard and Poor’s warning of a
possible downgrade of the credit rating of the United States, European
Central Bank President Jean-Claude Trichet said Thursday that he was
confident that Washington would reduce its deficit.
“I have confidence that the United States will correct the budget
situation,” Trichet said in a radio interview, citing the recent
assurances of U.S. President Barack Obama.
All the advanced economies face “serious” budget problems, he
noted.
An accord on a bailout program for Portugal should be reached
before the upcoming national elections, Trichet said, noting that the
principles of a deal had been accepted by authorities and that details
are currently being worked out by the ECB, the IMF and the European
Commission with all of the country’s political movements.
Trichet declined to comment on the risk of a restructuring of
Greece’s debts, saying simply that the bailout program is being applied.
He said there was no need for an adjustment of the plan, but that
progress “must be monitored very closely.”
–Paris newsroom +331 42 71 55 40 e-mail stephen@marketnews.com
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