October 11, 2002	Friday	Sha'aban 4, 1423

FRANKFURT, Oct 10: Euro-zone governments must take “swift and decisive” action to improve their budgetary positions, European Central Bank President Wim Duisenberg said on Thursday.

Speaking to journalists at a news conference here, the ECB chief noted “with some concern that there is still insufficient ambition in some countries to bring budgets to positions close to balance or in surplus over the medium term,” as required by the euro zone’s Stability and Growth Pact.

Without naming the countries specifically, Duisenberg said the current fiscal problems faced by some euro-zone members arose from the fact that the countries had not taken the opportunity to consolidate their budgets when growth rates were high.

At present four countries have failed to make sufficient headway in curbing their deficits: France, Germany, Italy and Portugal.

“Given that this opportunity was missed, there is now no alternative but for all countries with remaining imbalances to make firm commitments to avoid excessive deficits...”—AFP