Trichet unhappy with new EU rules

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The Independent Online

The President of the European Central Bank, Jean-Claude Trichet, fears new European Union rules on government borrowing are too weak to safeguard the eurozone economies.

The regulations have been agreed between by France and Germany and their compromise deal is likely to be rubber-stamped at meetings in Brussels this week. But reports at the weekend suggested Mr Trichet had warned French and German officials their actions could threaten the coherence of the eurozone.

Mr Trichet has also endorsed a pledge at the G20 summit in Korea to avid currency wars and to "move towards more market-determined exchange-rate systems that reflect underlying economic fundamentals and refrain from competitive devaluation of currencies".

Mr Trichet was also quoted as having said: "A strong dollar is in the interest of both us and of America."