ECB's Trichet: German Economy Can Be Model For Neighbors -Report
03.09.10, 22:06 Uhr
"Being very attentive to production costs and undertaking
reforms to make the economy more flexible can be an example for all
[Germany's] neighbors," Trichet says in the interview, to be published in French daily Le Figaro.
Trichet says the strong performance of Germany's economy is a reward for its efforts. Its success is due to the moderation of unit costs, a slower rise in salaries than elsewhere, and progress made on productivity, Trichet says.
Still, Trichet says there is nothing "abnormal" about difference growth rates within the euro zone and for a long time other economies outpaced Germany's.
Trichet reiterates in the interview that he doesn't expect a double dip in Europe, but says in the long term Europe can expect to have less buoyant growth than the United States for demographic reasons, even it will be quite close.
The level of unemployment in Europe is unacceptable and there is still a lot to do on structural reforms, Trichet says.
Euro-zone countries must also make significant efforts to reduce public debt and states should convince households, businesses and savers to adapt strategies to manage their debt sustainably.
Trichet also reiterates that he welcomes China's move in June to allow for more flexibility in exchange rates.
"Concerning the Chinese currency, the message we have been sending to the authorities in the past was simple: more flexibility," Trichet says.
"From this point of view, I appreciated...the moves towards more flexibility made public by China in June," he says.
Trichet also repeated calls for more competition amongst ratings agencies.
"It is not necessarily healthy that [issuing ratings] is concentrated in the hands of only three institutions worldwide," Trichet says. The solution isn't necessarily a public agency and the best solution would be worldwide, he says.
Trichet says the strong performance of Germany's economy is a reward for its efforts. Its success is due to the moderation of unit costs, a slower rise in salaries than elsewhere, and progress made on productivity, Trichet says.
Still, Trichet says there is nothing "abnormal" about difference growth rates within the euro zone and for a long time other economies outpaced Germany's.
Trichet reiterates in the interview that he doesn't expect a double dip in Europe, but says in the long term Europe can expect to have less buoyant growth than the United States for demographic reasons, even it will be quite close.
The level of unemployment in Europe is unacceptable and there is still a lot to do on structural reforms, Trichet says.
Euro-zone countries must also make significant efforts to reduce public debt and states should convince households, businesses and savers to adapt strategies to manage their debt sustainably.
Trichet also reiterates that he welcomes China's move in June to allow for more flexibility in exchange rates.
"Concerning the Chinese currency, the message we have been sending to the authorities in the past was simple: more flexibility," Trichet says.
"From this point of view, I appreciated...the moves towards more flexibility made public by China in June," he says.
Trichet also repeated calls for more competition amongst ratings agencies.
"It is not necessarily healthy that [issuing ratings] is concentrated in the hands of only three institutions worldwide," Trichet says. The solution isn't necessarily a public agency and the best solution would be worldwide, he says.
Newspaper Web site: www.figaro.fr
DJG/sch
