Europe Economy

Trichet: Euro Zone in Better Shape Than US, Japan

Reported by Silvia Wadhwa, written by Antonia Oprita, CNBC.com
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The European Central Bank is not worried about the health of the euro zone as a whole and it will stick to its role of fighting inflation, ECB president Jean-Claude Trichet told CNBC in an interview Thursday.

Jean-Claude Trichet
Fabrice Coffrini | AFP | Getty Images

The bank bought bonds in the markets and announced a new liquidity operation earlier Thursday, but investors continue to worry about the size of the debt problem.

"We are doing our job and our job is to be responsible for price stability," Trichet said.

While certain countries had problems, the whole of the euro area – also known as the Eurosystem – was healthier than the US and Japan, he added.

"I am not concerned for the Eurosystem as a whole… if I take the Eurosystem as a whole we are in a much better situation… than the US and Japan or other big economies," Trichet said.

The euro zone's overall budget deficit will be around 4.5 percent of gross domestic product this year, compared with around 10 percent for the US or Japan, he added.

But he admitted there were problems in individual countries and reiterated that governments have "enormous responsibility" in reining in their spending and cutting down on debt.

Improved governance is necessary for countries to get out of the crisis, Trichet added.

"The problem is that some countries were not very well managed," he said.