Spain: Prime Minister Zapatero lashes out at European Central Bank
I dont say its certain, Trichet said, I say its possible.
A very solid anchoring of inflation expectations is essential, Trichet added, making it clear that, despite rising energy and food prices, workers must bear the brunt of the growing economic crisis. The ECB is looking to land the first blow against demands for increased wages.
Urging Trichet to show a bit more prudence, Zapatero said, We all respect the independence of the European Central Bank but we all expect the European Central Bank to behave responsibly. He said an increase in the European Interbank Offered Rate (Euribor)the average interest rate at which 50 of Europes top banks borrow from one anotherwas surely excessive.
Repeating his criticisms later, Zapatero called for flexibility from the ECB.
Zapateros mood was darkened by the political crisis arising out of Spains growing economic problems, which has led to him being summoned to the countrys National Congress to explain what is happening and what he is doing about it. The appearance has few precedents.
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