Nieuwe ECB-president optimistisch over eurozone (en)

EUOBSERVER / BRUSSELS - In his long-awaited first press conference since becoming President of the European Central Bank (ECB), Jean-Claude Trichet was optimistic about a recovery in the euro zone's economic fortunes.

As economists had predicted, Mr Trichet decided to leave the euro zone's interest rates at their historically low level of two percent. This followed his first rate-setting meeting at the ECB's headquarters in Frankfurt.

And the Frenchman used his first media outing to express his optimism for the future of the euro zone economy.

In typically guarded central bankers' language, Mr Trichet said, "we see additional signs of a gradual recovery in the euro area ... the indicators are increasingly pointing towards some improvement in economic activity in the second half of this year".

Don't mess with euro rules

But Mr Trichet was not frightened to add to the controversy surrounding the rules that underpin the euro.

In comments with hardline undertones, Mr Trichet said that the three percent ceiling of the EU's Stability Pact - which France and Germany have both breached - "must not be placed in doubt".

Mr Trichet also indirectly criticised the behaviour of the European Commission in the recent controversy - "it is the view of the Governing Council that the proposals of the Commission push the room for interpretation of the rules and procedures to the limit".

Stressing the importance of keeping to the rules, he added, "it is the overall credibility of the fiscal framework and, hence, the prospects for economic growth in the euro area that are at stake".

The situation was "now at a critical point at which the credibility of the institutional underpinnings of EMU must be maintained", he concluded.

Financial markets were unshaken by Mr Trichet's annoucements as they had priced in the interest rate decision already.

The general view seemed to be that the Frenchman's first conference had gone well. One economist surveyed by the Reuters news agency said that he made "a pretty good stab" at his first press conference.