24 November 2003, 14:37  ECB's Trichet - Eurozone confidence boosted by reform

LONDON, Nov 24 - Confidence in the euro zone is improving in part due to government reforms, but further efforts are needed, European Central Bank President Jean-Claude Trichet said on Monday. "The fact that Europe is now changing its mood, the fact that confidence is improving in practically all surveys that we are embarking on now in Europe seems to me to be perhaps at least partially associated with the fact that the executive branches and parliaments in a number of economies in Europe have demonstrated that they could embark in those directions," Trichet said in a television interview on CNBC. Trichet said he did not want to anticipate the growth projections that ECB staff are due to publish next month. "But when I refer to the various estimates coming from international institutions or European institutions, we are in between 1.7 and 1.9 (percent) as an average for 2004." "Now we have hard figures coming and all the information (is that) it will be a quick speed up, so there is an acceleration." Trichet was taking part in a CEO Summit sponsored by the Wall Street Journal Europe and CNBC Europe Trichet later on Monday travels to Brussels to meet with finance ministers over Germany's call to interpret the Stability and Growth Pact budget rules flexibly. The ECB has warned ever more forcefully in the past month that failure to tame budget deficits could lead to higher interest rates in the euro zone and harm growth in the medium term.//

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