Trichet on EU leaders’ decision to double ECB’s capital base

European Central Bank Chief Jean-Claude Trichet, talking to journalists in Brussels on Thursday, explains the European Union government’s decision to strengthen the capital of the ECB, saying this was already based on a decision made in 2000 that enable the capital of the bank to be increased by some 10 billion euro. The ECB will almost double its capital base to help protect it from losses as the institution buys bonds of governments from Portugal to Ireland to fight the sovereign-debt crisis. The capital increase indicates that the ECB is worried that its 72-billion euro program to buy bonds of strained governments may saddle its balance sheet with losses, according to Bloomberg News. Policy makers have increased pressure on governments to do more to end Europe’s debt crisis on concern the ECB is shouldering too much of the burden. Also read: www.bloomberg.com