ECB President Optimistic About Euro Zone Economic Prospects

Economic growth in the 12 euro zone countries is set to become more broad-based and gather momentum in the coming year, according to a statement by European Central Bank President Jean-Claude Trichet. Speaking to journalists after the monthly meeting of the ECB, Trichet said, "the information which has become available in recent months indicates that the economic recovery in the euro area has maintained its momentum and should remain firm in the coming quarters". Backing up his optimistic words with numbers, the ECB head announced that the bank was raising its growth projections for 2005 for the euro area to between 1.8 percent and 2.8 percent, slightly higher than the June projections. The President appeared cautious about proposed changes to the Stability and Growth Pact, due to be discussed in the Commission Friday. "The Governing Council remains convinced that there was and there is no need for changes to the text of the Treaty and of the Stability and Growth Pact," he said.