FRANKFURT, July 9 (Reuters) - It is too early to declare that the financial crisis is over and budget cuts by governments will not hinder economic growth, European Central Bank President Jean-Claude Trichet said on Friday.
His comments were made at a ECC watchers conference organised by the Goethe University Frankfurt's Centre for Financial Studies.
ECB Executive Board members Juergen Stark, Lorenzo Bini Smaghi and Vice President Vitor Constancio are also due to speak later.
FISCAL CONSOLIDATION
'We (ECB) are totally against the view that reducing public expenditures will hinder economic growth'
'Consolidation measures will help turn the current upturn into sustained growth.'
'Just like consumers and countries, governments cannot live beyond their means forever. Fiscal authorities need to look beyond the current cyclical upturn. There is no alternative to that.'
STABILITY AND GROWTH PACT
'The pact has been considerably weakened over time.'
'In the most severe cases of persistent non-compliance (countries not complying with pact rules), a limitation or suspension of voting rights should be considered.'
STRESS TESTS
'These tests will increase transparency and enhance investors' confidence in Europe's banking sector.'
CRISIS NOT OVER
'Events over the past few months have made it clear that it is still too early to declare the crisis over.'
'Governments and central banks in Europe and around the globe continue to respond to shifting economic and financial circumstances with swift, decisive and effective actions.
NEW REGULATIONS
'We are now at a stage in which we have to finalise new rules and regulations that will help to make our economies more resilient... It is a very important phase and it requires our full attention.'
(Reporting by Marc Jones, Paul Carrel and Sakari Suoninen) Keywords: ECB/WATCHERS (sakari.suoninen@reuters.com; +49 69 7565 1267; Reuters Messaging: sakari.suoninen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
His comments were made at a ECC watchers conference organised by the Goethe University Frankfurt's Centre for Financial Studies.
ECB Executive Board members Juergen Stark, Lorenzo Bini Smaghi and Vice President Vitor Constancio are also due to speak later.
FISCAL CONSOLIDATION
'We (ECB) are totally against the view that reducing public expenditures will hinder economic growth'
'Consolidation measures will help turn the current upturn into sustained growth.'
'Just like consumers and countries, governments cannot live beyond their means forever. Fiscal authorities need to look beyond the current cyclical upturn. There is no alternative to that.'
STABILITY AND GROWTH PACT
'The pact has been considerably weakened over time.'
'In the most severe cases of persistent non-compliance (countries not complying with pact rules), a limitation or suspension of voting rights should be considered.'
STRESS TESTS
'These tests will increase transparency and enhance investors' confidence in Europe's banking sector.'
CRISIS NOT OVER
'Events over the past few months have made it clear that it is still too early to declare the crisis over.'
'Governments and central banks in Europe and around the globe continue to respond to shifting economic and financial circumstances with swift, decisive and effective actions.
NEW REGULATIONS
'We are now at a stage in which we have to finalise new rules and regulations that will help to make our economies more resilient... It is a very important phase and it requires our full attention.'
(Reporting by Marc Jones, Paul Carrel and Sakari Suoninen) Keywords: ECB/WATCHERS (sakari.suoninen@reuters.com; +49 69 7565 1267; Reuters Messaging: sakari.suoninen.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2010. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.