Monday, January 30, 2012

Former ECB head: Eurozone part of 'global crisis'

The former head of the European Central Bank says the eurozone's woes must not be taken in isolation, but viewed as part of a global crisis.

Former ECB president Jean-Claude Trichet told CNN's Richard Quest at Davos that it would be "an immense mistake to take the present situation as the European crisis."

"It would be the same mistake to take Lehmann Brothers as the American crisis only," he said. "The epicentre of the crisis is in Europe on the sovereign risk, but it's a global crisis."

He rejected the suggestion that European leaders had done nothing substantive to address the crisis since last year's World Economic Forum, saying political decisions had to occur at their own pace.

"A lot has been done," he said. "The time of the democracy is of course a little bit longer than the time of the market."

Still, he said, there was "no time for complacency." Read More