Prudent guardians of the euro

The regional daily the Stuttgarter Zeitung voices support for the plans of the European Central Bank (ECB) to raise the base interest rate: "According to some politicians, as well as certain economists, this step comes at an inopportune moment. ... They conjure up the spectre of stagnation - a period of zero economic growth but rising prices and higher unemployment. Yet even though [ECB] president Jean-Claude Trichet and his colleagues should take these concerns seriously, their main task is to keep inflation expectations at a level that promises relative price stability. To achieve this they must raise the base interest rate. ... The guardians of the euro have demonstrated over the past decade that they are able to react appropriately to the challenges of the moment without compromising their independence by allowing themselves to be influenced by political demands. ... One result of the ECB's prudent financial policy is the fact that the single currency has established itself as a stability factor within a very short period of time."

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