Trichet: Banks must provide credit to economy

The President of the European Central Bank Jean Claude Trichet has said that recovery from the financial crisis will require a concerted effort to offset joblessness.

In an interview with a German newspaper Mr Trichet said that banks had to perform their central role in supplying credit to the economy.

He urged Governments in the euro zone to reign in public spending - saying that Budget deficits must be reduced by 2011 at the latest in some countries as early as 2010 -- in order to maintain confidence in public finances.