European Central Bank President Jean- Claude Trichet said it’s a mistake to say the euro region has any weak links and rejected concern about Ireland’s position.
"Ireland is not the weak link of the euro area and there is no weak link of the euro area," Mr Trichet said at an event in Paris today.
"I consider that speaking of any particular country as a weak link in the euro area is an error of judgment."
European budget deficits have ballooned as governments from Berlin to Dublin announce spending packages to save their banking systems from collapse and promote economic growth.
The European Commission on February 18th urged governments to develop plans to reduce their deficits and proposed placing countries including Ireland and France under close budget scrutiny.
The European Union's executive arm forecasts deficits of 11 per cent of gross domestic product in Ireland, 6.2 per cent in Spain and 4.6 per cent in Portugal this year.
Under the Stability and Growth Pact, member states are required to keep their budget deficits below 3 per cent of GDP.
Mr Trichet said today that each of the 16 nations using the euro must be "up to its own responsibilities."
"We're in a difficult situation," he said. "We must never forget to care about the medium and long term."
Bloomberg