29th Mar 2020

Trichet moves to shore up eurozone confidence

  • Mr Trichet has faced criticism from some over the bank's role in fighting the crisis (Photo: Council of European Union)

European Central Bank chief Jean-Claude Trichet has said pessimism over the eurozone is overblown, with the 16-member region unlikely to suffer a double-dip recession.

Mr Trichet struck a cautiously optimistic tone while speaking to journalists on Thursday (8 July) in Frankfurt, after a meeting of the bank's governing board decided to hold interest rates at one percent.

Read and decide

Join EUobserver today

Support quality EU news

Get instant access to all articles — and 20 years of archives. 14-day free trial.

... or join as a group

"We are in a situation where a number of facts and figures and data are not, I would say, confirming that we would have stagnation or a double-dip," he told the news conference.

Data suggest second quarter eurozone growth this year was significantly stronger than the previous three months, although the ECB's growth forecast for 2010 remains unchanged on one percent.

Germany is largely driving the improved scenario, with the county enjoying a rise in exports of 9.2 per cent and industrial production by 2.6 per cent in May compared with April.

"One should not underestimate Europe," said Mr Trichet, who has overseen the ECB's provision of an array of extraordinary measures in order to shore up Europe's financial sector and wider economy.

Most controversial was the decision in May to enter the secondary sovereign bond market, with the bank's bond purchases totaling just €4 billion last week, down from €16.5bn in its first week of operation.

The veteran banker hinted that this trend may result in the scheme coming to an end shortly, as investors gradually "incorporated" information about the €750 billion rescue mechanism created by the EU and IMF.

Mr Trichet said plans to publish the results of 'stress tests' on the regions top banks later this month was also adding to a growing confidence in the region.

No breakthrough at EU budget summit

EU leaders failed to reach agreement on the EU's long-term budget, as richer states and poorer 'cohesion countries' locked horns. The impasse continues over how to fund the Brexit gap.

EU leaders struggling to break budget deadlock

Cuts to innovation, space, neighbourhood and other programme-spending push down the latest budget proposal on the table of EU leaders. Rebates could stay on, to win the support of the net-payers for a deal.

Unhappy EU leaders begin budget haggle

EU leaders arriving at the Brussels summit criticised the budget proposal of EU Council president Charles Michel, as richer member states insisted holding onto their rebates, while poorer countries wanted to avoid deep cuts to their subsidies.

News in Brief

  1. UK health minister tests positive for coronavirus
  2. Orban: coronavirus exposes EU 'weaknesses'
  3. Court orders Netherlands to pay colonial victims
  4. Belgian cat 'infected by coronavirus'
  5. UK PM Johnson tests positive for coronavirus
  6. EU agrees Libya naval mission after Greek solution
  7. US to upgrade its nuclear bombs in Europe
  8. US surpasses China and Italy with 82,404 corona cases

Vietnam sent champagne to MEPs ahead of trade vote

A trade deal with Vietnam sailed through the European Parliament's international trade committee and after its embassy sent MEPs bottles of Moet & Chandon Imperial champagne over Christmas.


Promises and doubts: Africa's free-trade adventure

The EU is hoping that a continent-wide free trade agreement in Africa will help lift millions out of poverty and help solve issues of security and migration. But its message of values and equal partnership do not resonate with everyone.

Stakeholders' Highlights

  1. UNESDAMaking Europe’s Economy Circular – the time is now
  2. Nordic Council of MinistersScottish parliament seeks closer collaboration with the Nordic Council
  3. UNESDAFrom Linear to Circular – check out UNESDA's new blog
  4. Nordic Council of Ministers40 years of experience have proven its point: Sustainable financing actually works
  5. Nordic Council of MinistersNordic and Baltic ministers paving the way for 5G in the region
  6. Nordic Council of MinistersEarmarked paternity leave – an effective way to change norms

Latest News

  1. EU doctors: bring refugees on Greek islands to safety
  2. Russia's top coronavirus 'fake news' stories
  3. WHO warning on lockdown mental health
  4. Virus: Frontex tells officers to keep guarding Greek borders
  5. EU heads struggle to find joint virus response
  6. Poland's sham presidential election in a pandemic
  7. Von der Leyen warns 'end selfishness' in virus crisis
  8. Chinese ambassador to EU: put trust before politics

Join EUobserver

Support quality EU news

Join us