Wednesday, December 15, 2010

ECB Chief Urges Bigger Aid Fund

Wall Street Journal
December 15, 2010

European Central Bank President Jean-Claude Trichet called on European Union governments to enhance the financial-rescue vehicle they set up in the wake of the Greek debt crisis.

Mr. Trichet's remarks come as Europe's fiscal crisis shows signs of deepening despite stepped-up efforts by the ECB to contain it by buying more government bonds of Greece, Portugal and Ireland and making unlimited loans available to commercial banks into next year.

Standard & Poor's Corp. lowered its ratings outlook on Belgium to negative from stable Tuesday, saying the country could face a one-notch downgrade if it fails to form a government within six months. Portugal's Prime Minister José Sócrates moved to reassure financial markets that his country, viewed by many observers as the most likely in the euro zone to follow Greece and Ireland into a bailout package, is getting its finances in shape.


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