European Central Bank chief Jean-Claude Trichet has called for a 'quantum leap' in budget checks on euro zone nations in the wake of the Greek debt crisis. His comments came in an interview with the Financial Times released tonight.
Trichet told the FT the suspension of the voting rights of member states who breach the conditions 'is something that should be explored', but said he did not back expelling them.
The ECB chief warned that governments and financial institutions had to be permanently in a state of 'credible alertness' for further shocks amid fears that the economic recovery is running out of steam.
But he said Europe was not at risk of deflation. 'No, I do not see the materialisation of a risk of deflation, or either of inflation, at present. We went through the heat of the crisis without any materialisation of deflationary risks,' he said.
