Trichet: Greek measures 'step in right direction' (by William L. Watts)

LONDON (MarketWatch) -- Measures announced by Greece in an effort to cut its budget deficit to less than 3% of gross domestic product -- the European Union limit -- by 2012 are a "step in the right direction," European Central Bank President Jean-Claude Trichet said Thursday at his monthly news conference. Trichet said it is "absolutely crucial" that Greece, which ran a deficit of nearly 13% of GDP in 2009, meet its budget goals. He called on all nations in the euro zone to respect the stability and growth pact, which set deficit and debt limits.