Ecofin ministers urged to push reforms further, avoid crises

Malta and Estonia have been named as the only two countries to have lowered their deficits during 2009.

The discussions will focus on measures proposed by the EU Commission to sanction Member States that exceed their budgets.

Controlling the budgets entail a series of austerity measures that have triggered mass demonstrations and general strikes across Europe, namely in Greece, Portugal, Ireland and Spain.

European Central Bank president Jean-Claude Trichet has meanwhile urged politicians and financial market actors to stay the course and push for reforms to avoid future crises.

"Effective financial reform needs perseverance," Trichet said in a speech yesterday to the Eurofi forum of European financial services in Brussels.

"Achieving reform is complicated; there are many stakeholders, many legal issues and many international linkages. Reform should result in policies that are sound, effective and convergent across countries," he added.

Europe has established the European System of Financial Supervision (ESFS) to oversee regulation of a sector that almost brought the 27-member European Union to its knees and required a bailout worth 27 percent of its total output.

But important differences remain among EU members, and with the memory of the financial crisis already beginning to fade, Trichet was keen to keep financial leaders' feet to the fire.

"Effective financial reform also needs strong determination," he stressed.

"Authorities avoided a collapse of the financial system only because they were able to take decisions with great rapidity and boldness that were not listed in any text books."

Trichet reminded those listening that "our economic environment remains very demanding. It is a time to remain alert, vigilant and inflexibly determined."