22.06.09 Europe bank chief warns on debt
Governments that have borrowed heavily to fight the economic crisis should not accumulate any more debt, the president of the European Central Bank has said.
Jean-Claude Trichet said existing stimulus packages were \"sufficient\".
\"There is a moment where you cannot spend more and accumulate more debts. We are at that moment,\" he said.
Mr Trichet added that global economic activity should come \"close to stability\" later this year, and that some growth would be seen in 2010.
\'Extraordinary\'
Stimulus packages are, essentially, government spending aimed at jump-starting economies.
Speaking to France\'s Europe-1 radio, Mr Trichet said that any new stimulus packages offered by governments would would only drive further into debt that would have implications for future generations.
He added that the stimulus packages already in place were \"completely extraordinary\".
\"In our analysis, this is sufficient,\" Mr Trichet said.
Many European countries have indicated that they will not be offering further economic stimulus, despite continued spending in the US.
In February, US Congress approved President Obama\'s $787bn stimulus package
http://news.bbc.co.uk/2/hi/business/8111662.stm
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05.08.10
