By Martin Banks - 31st March 2009
In order to meet what is an extraordinary challenge it is extraordinarily important now for us to be bold in our response to this challenge. Otherwise, we will be shooting ourselves in the feet
Jean-Claude Trichet
European Central Bank president Jean-Claude Trichet has appealed to world leaders to "show the public there is an exit strategy" from the current global economic crisis.
Speaking in the European parliament ahead of this week's much-awaited G20 summit in London, Trichet told MEPs, "It is extremely important to show the credibility of an exit strategy.
"We also have to demonstrate our determination to find a sustainable path to economic recovery so that EU citizens are able to count on us, both for price and fiscal stability.
"There is no doubt we have to regain public confidence in our ability to restart the economy and to get it back on its feet."
He added, "In order to meet what is an extraordinary challenge it is extraordinarily important now for us to be bold in our response to this challenge. Otherwise, we will be shooting ourselves in the feet."
Trichet was speaking during his testimony on Monday to a meeting of parliament's economic and monetary affairs committee.
He told members, ""Since my appearance before parliament on 21 January, the economic situation and outlook have weakened further."
"Inflationary pressures have diminished further."
"Looking ahead, we expect the inflation rate to remain well below two percent for this year and 2010."
"The risks to this outlook are broadly balanced," added Trichet, who was appearing before his 21st "monetary dialogue" exchanges with MEPs.
His comments come days after he refused to rule out the possibility of further interest rate cuts in the 16-member eurozone.
The economic meltdown is expected to dominate the G20 meeting of world leaders, which starts in London on Thursday.
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