Wednesday, January 12, 2011
Trichet and the Politicians
An addition to my previous post helps put the relationship between the ECB and the politicians further in perspective, lest their be any doubt or misconception about Trichet's preferences. Ultimately, he expects the euro zone's member states to consolidate their finances on their own. He made that clear last Friday when he said that the ECB cannot replace the 'irresponsibility' of national governments, at least not indefinitely, to manage their fiscal affairs prudently. But necessity is winning the day for the moment.