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ECB's Trichet defends German export focus

Published 03/22/2010, 03:21 PM
Updated 03/22/2010, 03:28 PM

BERLIN, March 22 (Reuters) - European Central Bank President Jean-Claude Trichet on Monday defended Germany's export focus, saying the price competitiveness of Europe's largest economy had helped to keep inflation in the euro zone in check.

"We have pursued our mandate of (ensuring price stability) and I must say Germany has helped us here," Trichet told German ZDF television, adding that without Germany's efforts, the ECB would have had to adopt a "more stringent policy" on the euro.

Trichet was speaking in French through an interpreter.

The ECB targets an annual inflation rate inside the 16-nation nation currency bloc of just below 2 percent.

Germany, which has raised its industrial competitiveness by keeping wages tightly under control, has been criticised by European partners for driving down demand in the bloc. France in particular has urged Germany to reduce its reliance on exports.

Chancellor Angela Merkel has responded by saying there can be no question of Germany abandoning its focus on foreign trade. (Writing by Dave Graham; Editing by James Dalgleish)

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