Trichet backs European support

Brussels: European Central Bank president Jean-Claude Trichet yesterday welcomed Europe’s decision to mirror the IMF’s approach to involving private investors in sovereign defaults and attacked talk of currency wars.

Europe has softened its tone on private investor involvement in any possible future default in recent weeks, saying it will follow the example of the International Monetary Fund rather than putting in place an automatic process.

“I had called upon governments to clarify their position and avoid ambiguity vis-a-vis investors, savers and market participants,” Trichet said at an European Parliament hearing.