ECB - Greece is Convincing  By: Axel Merk | Thu, Mar 4, 2010
Print Email  At its monthly press conference, European Central
Bank (ECB) President Trichet announced a further gradual
reduction of emergency lending facilities. Focus of the meeting
was the fiscal austerity package passed by Greece's parliament
the previous day. Unlike previous commentaries, Trichet was full
of praise for Greece, saying it was "extremely important that
the decisions taken by Greece could be convincing because they
would credibilize [sic] the adjustment program that was
absolutely necessary."  Trichet did not answer whether Greek's
actions would sway the ECB to accept Greek debt as collateral in
ECB funding operations in case further downgrades technically
disqualify them as collateral. However, he did say, "what has
been decided [by the Greek government] is very substantial is
approved as being convincing by the governing council [of the
ECB]."  Trichet built on his recent comments that the eurozone
is working as designed, saying,