Trichet sees confidence key to recovery

A recovery in confidence by households and businesses will be crucial to economic recovery, European Central Bank President Jean-Claude Trichet said, according to the transcript of a television interview. "Households themselves can fight back," he said, according to the transcript of the interview with Euronews television, released on Friday.
"When their confidence returns they can help fuel the recovery by consuming more, so companies will resume investment. The key is confidence," he said. Trichet also said that the ECB had taken unprecedented steps in pumping billions of euros into the financial system and banks that had taken advantage should pass the benefit on. "We are demanding the banks extend this credit across their client bases, and make a similar effort to the considerable one we are making," he said.