Trichet spoke Saturday at the end of a two-day meeting of European Union finance ministers in Wroclaw, Poland. He described the medium-term prospects for euro zone countries as "quite encouraging."
His remarks follow comments Friday by U.S. Treasury Secretary Timothy Geithner, who urged the EU to take quick action on its financial crisis. Geithner also said political wrangling in Europe is making the situation worse.
Geithner's appearance at the Poland meeting signaled growing American concern that Europe's financial crisis may threaten the U.S. economic recovery.
The EU ministers delayed a decision on whether to give Greece the next $11 billion to help it avert default. They also failed to conclude a debate on introducing a financial transactions tax.
Greek Prime Minister George Papandreou Saturday cancelled his planned visit to the United States to deal with the deepening crisis at home. Greece is under pressure to fulfill austerity commitments made to the EU in return for the next portion of its $150 billion bailout for Athens.
The EU meeting ended sooner than planned as thousands of demonstrators gathered in Wroclaw to protest proposed economic austerity measures, including a reduction in public benefits payments, fewer services, and possible tax increases.
Many EU countries have been resorting to austerity measures, as the grouping tries to deal with the spiraling financial crisis.
Reader Comments
"Geithner's appearance at the Poland meeting signaled growing American concern that Europe's financial crisis may threaten the U.S. economic recovery."
"Recovery" for the banksters. "Recovery" for the slimy "Supply-Side" fake economists. "Recovery" for the tax cheats, the tax avoiders.
Hunger, poverty, illness, homelessness and despair for the rest of America.
Geithner is BEGGING for his neck to meet rope. Be happy to oblige.
Voice of America - get it? V-O-I-C-E of A-M-E-R-I-C-A...since the voice of america has long been proven to be other than the voice of america we can understand the two shoe shuffle in words and meanings...what nudges me is that there are always tax increases for the poor when the rich have just robbed them through some ponzi scheme implying that there isnt enough money about...and strapping whole countries to phenomenal interest loans when they actually dont need them.