European Central Bank President Jean-Claude Trichet has been forced into the awkward position of trying to convince investors that despite the debt concerns of several Euro Zone member nations, the euro itself is solid and worthy of consideration as a safe investment. Yesterday, Trichet reaffirmed his “confidence†in Greece’s efforts to address its growing deficit while noting that the Euro Zone’s combined budget shortfall was less that the deficits in the US and Japan.
Despite these efforts, investors remain wary of the entire region.
“Something has to happen to turn credibility around,†said Paul Mortimer-Lee, head of Market Economics at BNP Paribas in London. “The market’s just saying it’s not believable. It might have to get worse before it gets better.â€
Source: Bloomberg
