ECB-Trichet doesn’t support new fiscal rule plans

LONDON, Oct 21 (BestGrowthStock) – European Central Bank President
Jean-Claude Trichet does not fully support plans for new fiscal
rules in the EU circulated this week, the ECB said on Thursday.

“The President of the ECB does not subscribe to all elements
of the (fiscal rules) report,” an ECB spokesman said, following
a report in the Financial Times that Trichet wanted the draft
proposals to be withdrawn because they did not include a line on
his objection to parts of the plans.

EU finance ministers agreed on Monday on how to toughen the
bloc’s budget rules to guard against sovereign debt crises.

But they said rule breakers would face sanctions only six
months after being warned, ignoring the ECB’s persistent calls
for semi-automatic punishments for budget offenders.

(Editing by John Stonestreet)

(To see the ECB’s original proposals for strengthening
economic governance please click:
http://www.ecb.int/pub/pdf/other/reinforcingeconomicgovernanceintheeuroareaen.pdf)

(Reporting by Marc Jones)

ECB-Trichet doesn’t support new fiscal rule plans