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So much for the effort to oust Greece from the euro-zone. European Central Bank President Jean-Claude Trichet said the idea of forcing budget deficit-heavy Greece from the euro-zone was “absurd.”

Asked by Reuters how realistic he thought the effort to force Greece out was, Trichet said, “I do not comment myself on absurd hypotheses, so that would be my response.”

Hawks in the 16-nation euro-zone want mixed capitalist/socialist Greece out of the euro-zone, even though Greece’s Prime Minister George Papandreou has committed to a 3-year spending reduction and tax increase plan to cut its budget deficit from the current 12.7% of GDP to 8.7% this year, and 5.6% and 2.8% in subsequent years. The 2.8% total in 2012 would bring Greece in compliance with the euro-zone’s 3% of GDP maximum for budget deficits.

Continue reading ECB’s Trichet Calls Ousting Greece from Euro-Zone ‘Absurd’

ECB’s Trichet Calls Ousting Greece from Euro-Zone ‘Absurd’ originally appeared on BloggingStocks on Thu, 14 Jan 2010 16:20:00 EST. Please see our terms for use of feeds.

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