Eurozone Out of Freefall Says Trichet

In an interview with French journal Le Monde the European Central Bank President was asked the following question:

The euro area economy grew by 0.4% in the third quarter. Is the crisis over?

After the second quarter figures, which were still slightly negative, this positive growth confirms that we have indeed come out of the period of free fall which characterised the six months following the collapse of Lehman Brothers. The figures confirm our baseline scenario, that of a progressive and gradual revival of the economy. What we are now observing is more favourable than we projected some months ago. That said, we must remain cautious. There is still a lot of uncertainty, as much at the global level as at the level of the euro area, particularly concerning next year’s growth. We cannot yet claim victory.

His response while not exactly the most optimistic does give an insight the thinking behind ECB policy. Trichet is in a tough position as the President of the ECB to try and face a crisis that has hit member states in different measures. German recovery has not been enough to pull the rest of the eurozone completely out of the recession.

Le Monde continues their line of questioning and the rest of the interview has the French economy as a focal point.

You can read the full interview at the ECB’s website

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