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Trichet Says Euro Governments Must Act to Meet Budget Targets

European Central Bank President Jean-Claude Trichet said the euro area’s 16-member governments must take all steps necessary to make their deficit reduction plans credible.

“We have the same message for all countries,” Trichet said today on RTL radio from Paris. “We say to them, ‘take all measures to make next year’s fiscal objectives credible. It’s important for confidence, notably for the confidence of investors and savers.’”

Trichet also said that the European Union has the “instruments” necessary to deal with threats to the euro and that the ECB’s current interest rates are “appropriate.”

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