Trichet urges 'enormous' eurozone effort to cut debt

European Central Bank President Jean-Claude Trichet on Saturday urged euro zone governments to make "enormous efforts" to reduce their debt.

In an interview with mass-selling German daily Bild, Trichet said the euro itself was not in crisis but rather there was a crisis concerning the public finances of some euro zone states.

The ECB chief sought to ease Germans' concerns about inflation, reiterating his position that the ECB would deliver price stability.

Trichet made his comments after euro zone inflation jumped last month to 2.2%, the first time in two years it has risen above the central bank's target of just below 2%.

"We are always concerned if inflation rises and are following developments very closely," he told the newspaper after the ECB held interest rates at 1% on Thursday.

"But the figures for December can be accounted for, above all, by rising energy prices," he added.

Accelerating inflation complicates the ECB's policy puzzle as it works out how best to keep prices in check without throttling the region's fragile peripheral economies.

After its Thursday rate decision, the ECB said the euro zone faced short-term price pressures which may linger, showing it could raise interest rates to contain inflation even while the bloc is gripped by a debt crisis.

Successful bond auctions by Spain and Portugal this week eased some of the fears they may be next to seek outside aid. But Trichet kept up pressure on such euro zone governments -- without naming any -- to put their public finances in order.

"This is not a crisis of the euro," he said. "Rather, what we have is a crisis related to the public finances of a number of euro area countries."

"This is no time for any complacency. Let me repeat: the ECB expects governments in the euro area to make enormous efforts to bring down their debt," he added. "Some countries have to get their debt under control again."

Asked if the euro would exist in 20 years' time, Trichet responded: "Of course, there is no doubt about that."