Budget caps challenging: Trichet

European Union newcomers face huge challenges in bringing down their budget deficits as they prepare their economies for adopting the euro currency, European Central Bank President Jean-Claude Trichet said.
"It is absolutely crystal clear that it is a demanding challenge for most of the new member states, and we know that," Trichet said in concluding remarks before an ECB conference on EU expansion.
"It is the reason why policymakers have to design and implement credible consolidation paths, and durable structural reforms," he said.