ECB Calls for Fiscal Consolidation Strategies
A few hours before similar remarks were made by Fed Chairman Bernanke (see previous blog), his European counterpart, European Central Bank (ECB) head Trichet, had noted how important it is that European governments come up with "ambitious fiscal consolidation strategies in a timely manner":
“As regards fiscal policies, we re-emphasise how important it is for governments to develop, communicate and implement ambitious fiscal consolidation strategies in a timely manner. These strategies must be based on realistic output growth assumptions and focus on structural expenditure reforms, not least with a view to coping with the budgetary burden associated with an ageing population. As agreed by the ECOFIN Council on 2 December 2009, governments need to set out concrete and quantifiable adjustment measures that will lead to a sustainable correction of fiscal imbalances. Several countries will have to start consolidation in 2010, and all others in 2011 at the latest."