Financial Times
June 13, 2011
Jean-Claude Trichet yesterday underlined the opposition of the European Central Bank to any bail-out for Greece that would trigger a credit event or be classed as a default.
“It has to be, in our opinion, a voluntary concept,” Mr Trichet said in a speech at the London School of Economics. “Avoid whatever would trigger a credit event, avoid whatever would trigger a selective default or a default ... This is our message to governments,” he said.
The ECB and the German government are in opposing camps over efforts to produce a fresh international bail-out for Greece. While Mr Trichet has made clear his opposition to any compulsory contribution to a bail-out being forced on investors, Wolfgang Schäuble, Germany’s finance minister, has called for a “substantial contribution” by bondholders in return for German support for a new aid programme.
Mr Trichet added that “we are in the presence of a systemic aspect of the situation. I think that our advice [not to trigger a credit event or impose a default on bondholders] speaks for itself. In any case it is very strong advice for those who are taking these decisions.”
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