Euro zone needs more ambitious reforms -Trichet

Published 10/16/2010, 09:30 AM

MARRAKESH, Morocco, Oct 16 (Reuters) - European Central Bank President Jean-Claude Trichet said on Saturday that more ambitious reforms of European Union budget rules were needed for the euro zone than those proposed by the European Commission.

"A number of the commission's proposals are going in the right direction, but for the euro area more ambitious reforms are needed to ensure the smooth functioning of monetary union," Trichet said at the World Policy Conference in Marrakesh.

Trichet said all deadlines under the excessive deficit procedure should be "significantly reduced" and sanctions should be applied "quasi-automatically".

(Reporting by Christian Lowe, Writing by Sarah Marsh, Editing by Michael Roddy)

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