Trichet Says Crisis Is Not Over, Exit Important

By Matthew Newman

Sept. 9 (Bloomberg) -- European Central Bank President Jean-Claude Trichet said while the financial crisis is not yet over, it’s important for policy makers to consider how they will withdraw economic stimulus measures.

“It’s not time yet to say that the crisis is over,” Trichet told reporters in Brussels today after meeting European Parliament President Jerzy Buzek. “At the same time, it’s very important to be convincing on the path to a normal sustainable position.”

The Frankfurt-based ECB, which has cut interest rates to a record low, is loaning banks as much money as they want for up to 12 months to get credit flowing through the economy again. Governments are also spending billions on measures to kick-start economic growth. Germany and France emerged from their recessions in the second quarter, putting the euro-area economy on course to expand in the third.

Trichet also said the reform of the financial system should remain “as strong as possible, despite some quarters that say things are back to normal.”

He also said the ECB stands ready to contribute to the establishment of a European Systemic Risk Board of central bankers and financial regulators, which would share information and monitor hazards across borders and industries.

To contact the reporter on this story: Matthew Newman in Brussels at mnewman6@bloomberg.net