23 Jun 2009

ECB chief warns about debt

8:55 am on 23 June 2009

The head of the European Central Bank says governments that have borrowed heavily to fight the economic crisis should not accumulate any more debt.

ECB president Jean-Claude Trichet said existing stimulus packages were "sufficient".

He added that global economic activity should come "close to stability" later this year, and that some growth would be seen in 2010.

The BBC describes stimulus packages as essentially, government spending aimed at jump-starting economies.

Mr Trichet told Europe-1 radio in France that any new stimulus packages offered by governments would only drive further into debt that would have implications for future generations.

He added that the stimulus packages already in place were "completely extraordinary".

Many European countries have indicated that they will not be offering further economic stimulus, despite continued spending in the US.

In February, the US Congress approved a stimulus package put foreward by President Barack Obama valued at $US787 billion.