jean claude trichet is returning as ecb's president. 's been forced to buy up tens of billions in sovereign debt trying to deal with the crisis that few anticipated. in a recent interview, trichet said the eu may need to amend its treaties so bad behavior can be punished. >> for tomorrow and the day after tomorrow, you have to, in my opinion, have a vision of what should be done. that is my own personal sentiment. it's not the sentiment of the institution, but my own sentiment is that we have to go further and visit if necessary a change of the treaty to permit the governance of europe to put -- because a particular country would not behave properly, refused to behave properly, not apply recommendation. refuse one time, two time the recommendation, then we must have the capacity from the center to impose decision otherwise it puts into question the stability of the whole. >> you can see cnn's entire interview with jean claude trichet a few hours from now, early on tuesday if you're watching in asia, in a very internal edition of "quest m

outgoing ecb president jean- claude trichet made firm on interest rates. >> it was jean-claude trichet'spolicy -- last policy meeting. he warned of an impending threats from the debt crisis. there are two new injections of all trips team funding -- injections of much needed funding. >> we urge the banks to do all that is necessary to reinforce their balance sheets, to retain earnings, to ensure moderation in enumeration and to return to the market to strengthen the capital braces. >> his words reflect his concern over a possible banking crisis. many banks are in an urgent need for a boost as risks increase. >> the economic outlook is subject to particularly high uncertainty and intensified downside risks. >> he left interest rates at 1 and 1/2% due to a recent surge in inflation. he is stepping down on the midst of what he called the worst economic crisis since world war ii. his successor is not likely to have an easy time of it. >> the european commission is proposing a coordinated recapitalization of the region's banks. this came after france and belgium agreed to bail out dexia, the f

. >> this was a jean-claude trichet/press conference as the president of the european central bank. retirement celebration it was not. rather, a hard-headed look at mounting problems. interest rates remained at the same, but he signaled concern about slowing economies, even as inflation remains above the ecb's targets. >> the government decided to keep the key ecb interest rates unchanged. this confirms our view that inflation is likely to stay above 2% in the months ahead or to decline. conditions are likely to dampen the pace of economic growth in the second half of the year. >> he said the ecb would take measures to lend to banks that might find themselves in difficulty because they have lent to greece or other countries with public finances in trouble. analysts are already concerned at times that banks are increasingly loath to lend, and finding it harder to raise money. >> banks are now really turning the tap off new credit. this would precipitate some very negative development for years to come. >> chancellor angela merkel, the heads of the world bank and the international mon

already in germany's banking capital to attend a farewell ceremony for outgoing ecb president, jean- claude trichet. the event has turned into a crisis meeting. chancellor merkel says there is no time to lose. >> if we want to turn the crisis around, if we are determined to promote europe, we must grasp this as a chance and be prepared to act and conventionally and fast. i believe that the topic of a treaty amendment should be on the table. >> the two leaders are expected to discuss ways of restoring confidence in the financial market. one idea is to leverage the eurozone rescue fund, pushing it to over 2 trillion euros. the fund would be used to guarantee bank losses and prevent contagions two bigger european economies. with the occupied wall street protests have been spread to frankfurt, pressure is mounting on the german pressure. these protesters hope that she will have a solution to the spiraling prices. >> we are looking ahead. the head economist told us about how leveraging works and what advantages it has for the bailout program. this is similar to a joint move made by the u.s. treasury dep

. >> this was the jean-claude trichet is last press conference as the president of the european central bank. a retirement celebration it was not. rather, a hard-headed look at mounting problems. interest rates remain the same. he signaled concern about slowing economies, even as inflation remains above the ecb targets. >> inflation has been elevated and incoming information has confirmed our view that inflation is likely to stay above 2%. ongoing tensions in financial markets are likely to dampen the pace of economic growth in the whole area for the second half of the year. >> he said the ecb would take measures to lend to banks that might find themselves in difficulties because they have lent to greece or other countries with public finances in trouble. analysts are already concerned that banks are increasingly close to land. they're finding it harder to raise money. >> banks are turning the tap off new credit. this would precipitate some very negative news for the economy. >> in berlin, the chancellor merkel met with heads of the world bank and the imf. she urged banks to raise money

. >> it was shawn country should -- jean-claude trichet's last appearance before retiring. he had a warning. the sovereign debt crisis could spread and destabilize the european economy. one key problem is the lack of transparency in financial markets. this makes it hard to predict not gone effects. it is making american banks and insurers nervous. u.s. banks hold a relatively small exposure, but european banks decided to reinsure their investments in u.s. banks using a tool called credit defaults swaps. now those banks hold nearly 25 billion euros agree that. most of the major financial services funds in the u.s. are involved -- goldman sachs, jpmorgan, and bank of america, to name just three. the details of who injured how much money in those institutions remain unclear. bank of america looks to face the biggest blow. it was already hit hard by the financial crisis in 2008. it is slashing tens of thousands of jobs. if the bank of america collapsed, it would send shock waves through the financial sector at a time when the u.s. is battling its own debt problems and the ameri

on the day jean-claude trichet takes a bow with a few words of his opinion and how everyone has coped. >> he's been defending his position as the president of the european central bank and the way the e.c.b. handled or is handling the sovereign debt crisis. after eight years he is stepping down and today there will be focus on the legacy that he leaves behind. it is a rather interesting story because the first half of his reign he was the euro zone saw some credible growth. inflation was moderate, which is the central bank or role of a central bank to keep inflation under control. also during the first half the financial system was stable. no doubt that will be overshadowed with the sovereign debt crisis. all eyes are on the italian who has been viewed with high regard how he took charge of the italian central banks. it will be interesting to see if keeps the eurozone on the same path. > we are quick to say he is italian when there is something they don't like. >> you have a example of a bit a casualty. >> we will touch on this on the world business report but m.s. global a u.s. finan

has called on national governments to now do their bit to ease the debt burden its president jean-claude trichet spoke ahead of a key meeting of world finance ministers gathered in paris to hammer out solutions to the crisis europe correspondent daniel bushell has more. patience of european central bank does seem to be running out it says that it can't really take the whole burden on itself it really needs the governments to come through the european governments come through and take some action because the latest come true problems with spain its problems with its solidarity a failure of solidarity is how the downgrade of its rating again which is going to make it even harder for it to raise money and pay off its debts we're expecting protests tomorrow perhaps the biggest protests so far over the measures in spain now russia's prime minister has come out and said that europe's governments could solve this problem if they wanted to. the crisis is more of a political than a financial issue according to different estimates between one and one and a trillion dollars is needed the number is big but