Europees bedrijfsleven teleurgesteld in ECB (en)

EUOBSERVER / BRUSSELS - Eurochambres, the group representing business associations all over Europe, issued a plea today (4 December) to the European Central Bank (ECB) to stimulate growth in the euro zone by cutting interest rates.

Presenting Eurochambres' annual economic survey, its President, Christoph Leitl, compared growth expectations in Europe unfavourably with those of the US.

"Growth expectations in the United States are twice as high as in Europe, whilst interest rates are half of those here. To fuel growth in Europe, we need to make use also of a powerful instrument like interest rates".

But his call fell on deaf ears as the ECB decided today to keep its interest rates on hold at two percent.

"Deeply regrettable" breach of euro rules

However, there was one thing that European business and its Central Bank could agree on today - the fact that France and Germany were threatening the credibility of the euro zone by ignoring the rules underpinning the single currency.

Mr Leitl said that not respecting the rules was "dampening upcoming dynamism".

For his part, Jean-Claude Trichet, President of the ECB, presenting his interest rate decision in Frankfurt today, said that the events of last week (when France and Germany essentially ignored the Commission's recommendations over their budgets) were "deeply regrettable".

Mr Trichet continued, "these developments risk undermining the credibility of the institutional framework and the confidence in sound public finances of Member States across the euro zone".

Increasing optimism

Both institutions expressed increasing optimism that the EU economy was on the up. The ECB said, "the economic recovery in the euro area has started and ... confidence has strengthened further".

The conclusion of Eurochambres' report - which surveys over 100,000 companies in 26 European countries - was also upbeat.

Business confidence is increasing in both current and future EU states, business turnover is expected to improve and investment is anticipated to increase, especially in accession countries.