Trichet says Greek programme realistic

Greece's budget consolidation programme is realistic and represents a good basis for economic recovery, European Central Bank President Jean-Claude Trichet said on Wednesday.

"Looking ahead, the economic and financial programme decided by the Greek government … represents a solid basis for a more positive outlook," he said in a letter to Ioannis Tsoukalas, a member of the European Parliament.

"The programme is based on realistic macroeconomic assumptions and, in addition to the necessary expenditure cuts and tax increases, includes a very rigorous and comprehensive structural reform agenda," Trichet said in the letter, which was published on the ECB's Internet site.

Over the medium term, structural reforms and return to fiscal sustainability will help to support employment and renew growth in Greece, he said.