According to a recent press report, Mr. Jean Claude Trichet, President of European Central Bank said that the treaty of European Union should be changed in order to stabilize the trade bloc. This would prevent one member from creating problems to the other members and destabilizing the bloc as a whole. He also insisted on precise application of the governance rules.
He added that at present all advanced economies are being affected by the crisis while in Europe disrespect to governance and lack of supervision over some particular members of the European Union led to the sufferings of the other members of the bloc.
He also said that there is no federal budget and political alliance to make the members respect the constraints completely and follow the supervision rules that exist in the euro zone.
The governance rules if applied rigorously would help in maintaining the discipline without even changing the treaty.
Trichet said that it is important that three areas should be focused: protecting sovereign signatures in Europe, protecting banks and all financial institutions so that they are able to do their job of financing the economy and in specific the problem of Greece.
He added that the European Central Bank has rendered the utmost assistance to support financial markets and now it is left to the government to tackle the persisting debt crisis prevailing in the euro zone.