Trichet Says EU Determination to Shore Up Euro Region Being Underestimated
By - Nov 30, 2010 2:44 PM GMT-0200
European Central Bank President Jean-Claude Trichet said investors are underestimating policy makers’ determination to shore up the euro region’s stability as contagion spreads through the bloc’s bond markets. “I don’t believe that financial stability in the euro zone could really be called into question,” Trichet told lawmakers in Brussels today. Observers “are tending to underestimate the determination of governments.”
European leaders are struggling to contain a worsening sovereign debt crisis that forced Ireland last week to follow Greece and ask for an international bailout. While European Union governments on Nov. 28 agreed to give Ireland an 85 billion-euro ($110 billion) rescue package, Spanish and Italian bonds then dropped on concern they may also need to need help as they try to get budgets under control.
The selloff is reminiscent of the declines that preceded the EU’s decision in May to set up a 750 billion-euro bailout fund to rescue the euro. On the same day, the ECB took the unprecedented step of agreeing to buy government bonds.
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Comment: Those who bet on the demise of the euro have fallen victim to their own propaganda and to the nonsense pronounced by the ruling class of incompetent economists.
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