ECB head praises Govt's handling of economic crisis

The President of the European Central Bank has praised the Irish Government for its handling of the recession.

Speaking in Dublin today, Jean-Claude Trichet (pictured) said the Government was acting resolutely to address the situation it found itself in.

He said he was optimistic about Ireland’s chances of weathering the economic storm and believed the Government was taking the right action by cutting spending and moderating wages.

Mr Trichet also warned that Ireland was facing severe challenges in the coming years and that further hard decisions would have to be taken.

He said he would like to see more wage restraint and less regulation and believed Ireland was well-placed to benefit from an eventual recovery in the global economy.