ECB’s Trichet confident of euro zone stability

European Central Bank president Jean-Claude Trichet told MEPs yesterday that he did not doubt the stability of the euro zone.

Asked if he feared a domino effect in light of the debt crisis, he said that this would not happen, adding that Ireland and Greece were both solvent and therefore debt restructuring was not an issue.

Trichet was also adamant that domestic democratic processes should not be interfered with, even in the event of a bailout. Asked by Belgian MEP Dirk-Jan Eppink if there is a link between political uncertainty and the financial markets, Trichet refused to draw any conclusions, stating again that democratic processes should be respected.

At the economics committee meeting yesterday, Trichet called on all MEPs to focus on the challenge of making the economic governance model better. He said the Commission’s proposals so far were “going in the right direction” but lacked “some boldness and detail”.

In a veiled criticism of recent events, Trichet repeatedly took the opportunity to call for “verbal discipline and clarity” which was essential in such times.