Business World

Saturday 19 August 2017

Trichet concerned fiscal rules not automatic enough

Concerns: ECB president Jean-Claude Trichet. Photo: Bloomberg News
Concerns: ECB president Jean-Claude Trichet. Photo: Bloomberg News

European Central Bank President Jean-Claude Trichet is concerned that amended European Union fiscal rules don’t include automatic sanctions for countries with excessive budget deficits, a spokesman said.

“The President of the ECB does not subscribe to all elements of this report,” the spokesman said. “There’s a lack of automatism in the proposal.”

European governments this week left decisions to sanction euro-area budget violators in political hands, stopping short of the more automatic crackdown on runaway deficits demanded by the ECB.

Germany, which had pushed for “quasi-automatic” sanctions and threatened to expel chronic high-deficit countries from the euro region, shifted its stance to embrace French calls to require at least two votes by euro-area governments before penalties are imposed.

Press Association

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