Money markets are not yet back to normal, the head of the European Central Bank Jean-Claude Trichet told the European American Press Club in Paris today, saying that risk aversion remained high.
Mr Trichet also said that the European Commission had been right to begin moves on Wednesday against France, Greece, Ireland, Latvia, Malta and Spain for running excessive public deficits.
The ECB head has warned for years that countries in the euro zone must respect rules and principles requiring them to move their public accounts into surplus in times of growth.
He has said recently that during the current economic crisis, the EU limit that public deficits should not exceed 3% of output should be respected, while noting that some flexibility is permitted.
Mr Trichet also said it was a mistake to say the euro region had any weak links, and rejected concern about Ireland's position. 'Ireland is not the weak link of the euro area and there is no weak link of the euro area,' he said. 'I consider that speaking of any particular country as a weak link in the euro area is an error of judgment.'
