ECB chief warns Europe to stick with financial reforms

30th September 2010, Comments 0 comments

European Central Bank president Jean-Claude Trichet urged politicians and financial market actors on Wednesday to stay the course and push for reforms to avoid future crises.

"Effective financial reform needs perseverance," Trichet said in a speech to the Eurofi forum of European financial services in Brussels.

A copy of his remarks was posted on the ECB's website.

"Achieving reform is complicated; there are many stakeholders, many legal issues and many international linkages. Reform should result in policies that are sound, effective and convergent across countries," he added.

Europe has established the European System of Financial Supervision (ESFS) to oversee regulation of a sector that almost brought the 27-member European Union to its knees and required a bailout worth 27 percent of its total output.

But important differences remain among EU members, and with the memory of the financial crisis already beginning to fade, Trichet was keen to keep financial leaders' feet to the fire.

"Effective financial reform also needs strong determination," he stressed.

"Authorities avoided a collapse of the financial system only because they were able to take decisions with great rapidity and boldness that were not listed in any text books."

Trichet reminded those listening that "our economic environment remains very demanding. It is a time to remain alert, vigilant and inflexibly determined."

© 2010 AFP

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