The head of the European Central Bank has been praising the stability of the single currency.
Jean-Claude Trichet has been talking up the euro-zone’s ability to cope with members’ debts. But he also issued stern warnings as he addressed the European Parliament’s Economic and Monetary Affairs committee meeting.
“In the event of non-compliance, sanctions need to be applied much earlier and to be broader in scope. They should not only address excessive debt ratios, but also apply when countries are not making sufficient progress toward medium-term budgetary objectives,” he said.
Trichet added that fiscal surveillance should be “more direct and effective”.
Greece is finalising its pensions overhaul and the Governor of the Bank of Greece is confident his country is back on the right track.
George Provopoulos told reporters: “The growth potential of the Greek economy is enormous, it is my firm belief that the present crisis will prove to be the catalyst that will reshape the economy making Greece a competitive and prosperous member of the Eurozone.”
Pension reform is key to this, and to EU and IMF financial aid for Greece.