ECB’s Trichet-Greece on right track, must meet goals

FRANKFURT, Feb 4 (BestGrowthStock) – It is vital that Greece meets
its stated goals for cutting its budget deficit and steps
announced by the government this week are encouraging, European
Central Bank President Jean-Claude Trichet said on Thursday.

“The ECB Governing Council approves of the medium-term goal
that has been fixed by the Greek government… Now, we expect
and we are confident that the Greek government will take all the
decisions that will permit (it) to reach that goal,” Trichet
told the ECB’s post-meeting news conference.

“In this respect, the measures that were taken last Tuesday,
namely (tax rises), the freezing of wages in the public sector,
and the pension reform, are steps in the right direction.”

The European Commission on Wednesday endorsed Greece’s
austerity plan but said Athens must take further steps to cut
public sector wages to tackle the most severe debt crisis in the
euro zone. [ID:nLDE6121AC]

In the ECB’s post-meeting statement, Trichet stressed that
all states must meet the terms of Europe’s pact on budgets and
debt, and underlined that the help Greece receives as a member
of the euro zone is conditioned on that.

Greece must submit an interim report by mid-March on
progress in reducing its huge deficit from 12.7 percent of gross
domestic product (GDP) in 2009 to below 3 percent in 2012.

Investment Research

(Reporting by Eva Kuehnen; writing by Patrick Graham)

ECB’s Trichet-Greece on right track, must meet goals