The European Central Bank's president says it has not started 'printing money' in response to the euro zone's debt crisis. Jean-Claude Trichet told Europe 1 radio in France that the bank would not abandon its inflation target or let the euro collapse. 'I am more confident than ever in the future of the euro,' he said. But Mr Trichet also warned: 'We have to strengthen oversight of budgetary policies adopted by this and that country.'
The European single currency zone has been plunged into fiscal crisis by spiralling deficits in Greece and some other countries, and this week Europe was forced to set up a €750 billion rescue fund to reassure markets. The ECB has stepped in to securities markets to buy up debt held by some European governments and private sector creditors, trying to provide them breathing space as they get their books in order.