ECB president warns ‘no more stimulus’
European Central Bank’s (ECB) president, Jean-Claude Trichet, is urging major economies not to implement any more stimulus packages by declaring that existing packages are “sufficient”.
Stimulus packages have been implemented in many of the major economies throughout the world and are aimed at boosting economies.
Mr Trichet said that the stimulus packages already in place were “completely extraordinary” and “in our analysis, this is sufficient”.
Meanwhile, Mr Trichet is predicting that the global economy will pick up in 2010 as activity should come “close to stability” in late 2009.
“There is a moment where you cannot spend more and accumulate more debts. We are at that moment,” remarked the ECB president on France’s Europe-1 radio.
According to Trichet, any new stimulus packages implemented will only drive further into debt and would have a negative impact on future generations.
Despite continued spending in the USA, the majority of Europe have hinted that no further economic stimulus packages will be implemented.