Jean-Claude Trichet, who steps down as president of the European Central Bank today, has rejected criticism of the bank's controversial bond-buying programme in a television interview.
Speaking to CNBC, Trichet said the decision to start buying up sovereign bonds of euro zone countries finding it difficult to secure financing via the markets was no easy one, adding that it was because "we were in an abnormal situation".
The ECB launched its bond-buying programme in May 2010 to support Greece which found itself facing prohibitively high borrowing costs. It more recently also bought bonds of both Italy and Spain on the secondary markets in an effort to push down their borrowing costs.
Trichet justified the moves by insisting they were only a temporary measure. But his critics argued the decision took the ECB beyond its core mandate, which is to keep a lid on inflation in the 17-nation euro zone.
Two of the ECB's most experienced German policymakers - Bundesbank President Axel Weber and chief economist Jurgen Stark - resigned in protest at the bond buying policy.
In the interview with CNBC, Trichet pointed the finger at governments, saying their profligate spending had created a situation which had left the ECB with no other choice but to act.
In a separate interview with the BBC, Trichet was asked whether Europe was having to eat humble pie in going with cap in hand to China to finance a debt bailout. "Not at all," he replied. "We are in a global world. How do you think other countries in the advanced world are financed. We are all in a global market," Trichet said.
Meanwhile, the White House says US President Barack Obama will hold bilateral meetings with President Nicolas Sarkozy of France and German Chancellor Angela Merkel on Thursday ahead of the G20 summit in Cannes.
Officials said the president would hold the talks ahead of the summit which is likely to be dominated by Europe's efforts to combat a debt crisis and build a firewall against global financial contagion.
Obama will leave for Europe on Wednesday night, and arrive in France for the summit early on Thursday.
