Greek PM: Safeguarding Price Stability

 (GREEK NEWS AGENDA)   Prime Minister Kostas Karamanlis addressed an official dinner given in honour of the European Central Bank’s (ECB) board at the Zappion Mansion on Thursday, stressing that although being a relatively new institution, the ECB “succeeded with great skill in safeguarding price stability and securing favourable conditions for growth.” He also said that the emerging crisis in world fiscal markets, the slowdown in the American economy and the increase in the prices of energy, basic products and food, unavoidably had an impact on Europe. He noted that the recent fiscal crisis underlined the need for closer cooperation in supervising the fiscal sector, adding that apart from the initial moves carried out, it is important that the effort to further strengthen the fiscal stability framework be continued. The prime minister went on to say that Greece’s priorities are focused on restructuring basic economic indexes, reforming markets, promoting social cohesion and sustaining viable growth with respect for the environment.  

See also Greek News Agenda: The Greek Economy-Pointers

ECB Keeps Rates at 4%

European Central Bank President Jean Claude Trichet on Thursday said policymakers had decided unanimously yesterday to leave interest rates at 4%, as the bank grapples with high inflation while economic growth is lagging. In his statement during a news conference, Trichet said the ECB’s current policy position would help it achieve price stability, although inflation was likely to remain high for some time due to turbulences in the world markets. Eurozone inflation eased moderately in April to 3.3% from the previous month’s, but remains well above the ECB’s 3% ceiling.

Kathimerini daily: ECB unanimous on keeping rates at 4%; Athens News Agency: ECB president on inflation; European Central Bank: Jean-Claude Trichet, President of the ECB, Lucas Papademos, Vice President, Athens, Greece, May 8 2008; Vice President of the ECB: Lucas Papademos