MercoPress. South Atlantic News Agency

Euro is Not Going Through a Crisis According to European Central Bank President

European Central Bank president Jean-Claude Trichet

The euro is not going through a crisis, although in some countries if the EU there are problems which must be solved, said the President of the European Central Bank Jean Claude Trichet. “There is no euro crisis. That is absolutely clear,” he added.

The central banks of the United States, the euro zone and Britain are united in their purpose of maintaining price stability despite differences over quantitative easing, European Central Bank president Jean-Claude Trichet said.

Speaking on a panel at the annual World Economic Forum, Trichet said that while the ECB had not engaged in QE -- printing money to buy up government bonds and other securities -- it had supplied illimited liquidity to banks during the financial crisis.

“Let me say that I consider that between central bankers we are very united in purpose, to solidly anchor inflation expectations in the medium-term in line with our understanding of price stability which in our case is close to but below 2 percent,” he said.

The different approaches were due to the different structures of the U.S. and European economies, he said, with markets playing a bigger role in funding the real economy in the United States and banks playing that role in Europe.