Eurozone countries must cut deficits: ECB chief

European Central Bank President Jean-Claude Trichet urged the 16 countries using the euro to slash their deficits "in 2011 at the latest," in an interview published Sunday.

"In the eurozone, budget deficits should be reduced in 2011 at the latest, in some countries already in 2010, to preserve faith in state finances," he told the Bild am Sonntag newspaper. "In Europe and around the world, there are lessons to be learned from the financial crisis to make the financial system more resilient."

He urged banks to help ease a credit crunch by making loans available. "Banks must live up to their central role in providing credit to the economy," Trichet said.

Note EU-Digest: the problem is that there still are no concrete regulations, either in the US or Europe, covering the financial industry. What is considered today as an improvement of the economy is only a reflection of the billions of euros, dollars and pounds of taxpayers money poured into the financial markets by governments in the West Unfortunately, the financial industry used it once again for speculative manipulation of the market and not to support the consumer. Only this time, when the financial system collapses again, the party will be over because most governments are broke.

For the complete report : AFP: Eurozone countries must cut deficits: ECB chief