No more stimulus spending needed: Trichet

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WASHINGTON, March 23 (AFP): European Central Bank chief Jean-Claude Trichet said in an interview with The Wall Street Journal yerterday that Europe doesn't need more stimulus spending, but that the ECB could lower its interest rate further to free up credit.
In support of European governments resisting US pressures to boost their stimulus packages, which are about half of the United States' 787 billion dollar plan, Trichet said all sides should "now, as efficiently and rapidly as possible, do what has been decided."
"Nothing will really work until the financial sector is back on track and ready to lend on a sustainable basis. I would say exactly the same with the budget," Trichet said in his interview published online Sunday by the The Wall Street Journal.
"Decisions have been taken; they are very important. Let's do it! Quick implementation, quick disbursement is what is needed," the ECB president said.
The United States and Europe are at loggerheads on whether to announce a fresh stimulus package at the upcoming Group of 20 summit meeting in London on April 2. Washington favors the move, and European countries like France and Germany, oppose it.
Trichet warned that if governments fall too deeply in debt, it could trigger a hike in long-term interest rates, which would sap public and business confidence.