Trichet: Portugal must stick to its austerity plans

BRUSSELS (Reuters) – European Central Bank President Jean-Claude Trichet said on Thursday it was crucial that Portugal stuck to the austerity measures it had announced to improve its economic situation.

“I said that it was capital that Portugal would confirm the plan that had been designed, and approved by the Commission in liaison with the ECB, and also has been approved by the European Council at the level of the heads of the euro area on the 11th of this month,” Trichet told reporters as he was leaving a summit of EU leaders.

“That was something that I said. I mentioned the importance of the (banking) stress tests and confirmed how important it was to have a solid framework in line with the state aid rules for the provision of government support if and where needed.”

Separately, diplomats at the summit said Portugal’s prime minister had promised other leaders during discussions at the meeting that no matter what government was in charge, Lisbon would stick to its commitments.

(Reporting by Jan Strupczewski, editing by Rex Merrifield)

Trichet: Portugal must stick to its austerity plans