Trichet concerned fiscal rules not automatic enough
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.