EU's Greek rescue plan gets support from ECB chief

Jean-Claude Trichet, the head of the European Central Bank, hailed an EU plan to offer financial relief to Greece jointly with the IMF, as both “workable” and “courageous”.

“I’m happy that the heads of state and government could work out a solution to take coordinated action if needed,” Trichet said after leaders of the 27-nation bloc approved an unprecedented EU-IMF tie-up to offer loans to Greece as “a last resort”.

“It’s a workable solution,” Trichet said, adding that it had also been a “courageous one”.

He added, however, that due to Athens’ current bid to reduce its ballooning deficit and debt, “I am confident the mechanism worked out today will not need to be activated and that Greece will regain the confidence of the market.”

Trichet also came back on comments he made earlier in the day which appeared to criticise recourse by the European Union for the first time in its history to the IMF.

He had said that “if the International Monetary Fund or any other body takes action instead of the eurogroup, instead of the governments… this is obviously very, very bad.

“All sign of a lack of responsibility on behalf of the members of the eurozone is bad in my eyes,” he had added in an interview to a French television network recorded before the deal was brokered.

Speaking later at a press conference following the announcement of the rescue plan, in which the EU has a majority role, Trichet said “this solution proves the responsibility of the euro area”.
Source: AFP