Doubt of euro members ‘absurd’

THE president of the European Central Bank Jean Claude Trichet gave a boost to confidence in the Irish economy when he said that it was absurd to imagine a euro member being a problem for the euro area.

However, he also told the European Parliament that countries have to take into account the markets when they are designing their fiscal programmes — in other words whether the markets believe a country is a safe bet or otherwise.

“It would be absolutely absurd to imagine that one euro member would have been in a position that would create a problem for the euro area at all,” Mr Trichet told MEPs on the economic and monetary affairs committee.