European Central Bank (ECB) President Jean-Claude Trichet insisted Saturday the euro was "not in danger," contradicting German Chancellor Angela Merkel's earlier warning that the currency's existence was at stake, dpa reported. "It is not the euro that is in danger, it is the fiscal policy of some countries that needs to be addressed," Trichet said in an interview with daily Frankfurter Allgemeine. Earlier in the week, Merkel had said Europe and the EU faced an "existential test," as she urged German legislators to approve the country's share of a 750-billion-euro (930-billion-dollar) eurozone safety net. Trichet said the 16-member eurozone's common currency was still reliable. "The euro is a credible currency whose inflation rate has stayed below 2 per cent for more than 11 years," the ECB-chief said. "The eurozone as a whole is soundly positioned," Trichet said, adding however, "Unfortunately this is not currently the case for all euro countries." He said some euro members needed to clean up their state finances, adding that this would strengthen the eurozone as a whole. "Market movements are always a combination of the mood of investors and the influence of speculative investors such as hedge funds," he added. Trichet again defended the ECB's decision to purchase bonds from ailing eurozone members, and said they did not act out of line. "Our guideline is price stability, and our credibility rests on reaching this goal," Trichet said. "To me, inflation is like a tax that would especially hit the poorest and weakest in society," the Frenchman added. -- SPA
