Stimulate no more – it is now time for all to tighten

Commentary feature. Jean-Claude Trichet, the President of the European Central Bank, argues the case for restoring fiscal sustainability.

Public spending cuts and tax increases should be imposed immediately across the industrialised world as evidence of a healthy European recovery mounts, according to Mr Trichet.

In the article, Mr Trichet argues that policymakers who want to prolong the stimulus are mistaken and that cutting borrowing would have 'very limited' effects on growth.