Jean-Claude Trichet: 10 years to avoid economic loss

From August 27 to 28th, central bankers from the world's major economies gathered in Wyo, the US Wyoming State, to convene an annual meeting to discuss ways to ensure a sustained and stable recovery in the global economy.　　On 27th, ECB president Jean-Claude Trichet pointed out that to achieve stable economic development, the government with huge debts must step up its debt burden and avoid the economy from falling into a "lost decade" again. Although economists generally expect fiscal tightening to slow the eurozone's growth in the second half of 2010, the eurozone's Member States are still firmly committed to fiscal austerity.　　August 27, the Dutch government approved a scale of 3.2 billion euros in budget cuts, European Commission President Jose Manuel Barroso on the same day urged Italy to continue to cut high public debt. "[Consolidating finance, reducing debt] is a prerequisite for a stable global recovery," Mr Trichet said in Friday. He said governments with huge debts needed to slash their debt burdens as the only way to achieve sustained and robust economic growth.　　In addition, the ECB will continue to work to keep inflation at a lower level. Mr Trichet, in the case of the Japanese economy in the the 1990s, said that a "lost decade" in the country's economy was directly caused by the continued fragility of the country's domestic banking system as a result of the debt boom.　　The biggest challenge for the world's macroeconomics over the next 10 years is to ensure that the economy does not fall into a "lost decade" again, Trichet warned. By the end of 2010, Mr Trichet predicts that eurozone member state debt will rise by 20% per cent from 2007 levels, while U.S. and Japanese government debt will grow by as much as 45% over the same period. (Xin Wen)