ECB's Trichet:: unsound budgets fuel inflation

The ECB President said on Thursday 20 November that "non-disciplined" fiscal policies would undermine confidence and thus reduce potential output and longer term growth in the eurozone. "The arguments in favour of the Stability and Growth Pact are not simply based on fiscal orthodoxy for the sake of orthodoxy. They are based upon fiscal soundness for the sake of fostering sustainable growth and job creation" Jean-Claude Trichet told the Centre for Financial Studies in Frankfurt.

Source: AFP

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