ECB Executive Board member Juergen Stark said eurozone countries had to cut deficits to regain market trust, even if austerity measures in crisis-hit Europe could go too far and hurt growth. In an interview with Italian newspaper La Stampa published on Saturday, Stark declined to comment on his resignation from the European Central Bank, which he announced earlier this week, citing personal reasons.
But he reiterated the ECB's call for fiscal discipline. "We can't rule out excesses (in austerity measures) at all. But (market) confidence in governments is essential," Stark said when asked if too many belt-tightening measures could cause a recession.