Eurozone:Gradual Recovery in 2011

Eurozone:Gradual Recovery in 2011Brussels, Jun 4. -The eurozone economy will gradually recover this year, and is showing signs of an upturn despite continuing uncertainty, according to the president of the European Central Bank (ECB), Jean-Claude Trichet.

In remarks to a European Parliament committee for economic and monetary affairs, Trichet said inflation expectations have remained static, but gradual and timely credit support is necessary to preserve stable prices in the 16 nations of the bloc.

Due better conditions in financial markets, Trichet considered that not all liquidity measures were as necessary as in the past.

It might be a too late to undo the generous liquidity supplied to some banks, and markets could become addicted to measures of financial support and low interest rates from the ECB, he said.

Banks should give enough credit and the governments of eurozone countries have to reduce their budget deficits to support economic revival in 2011, the bank official said. (Prensa Latina)