As expected, the European Central Bank kept interest rates at a record low of one percent at its latest policy meeting and again said the euro zone’s economic recovery will be modest and uneven this year.
President Jean-Claude Trichet said the region’s bank have a big role to play in that recovery: “An appropriate restructuring of the banking sector should play an important role: sound balance sheets, effective risk management and transparent, robust business models are key to strengthening banks’ resilience to shocks.”
Trichet also addressed Greece’s fiscal problems. He said Athens must achieve its promised budget deficit cuts.
He called the measures it has announced – higher taxes, a public sector wage freeze and pension reform – “steps in the right direction.”