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Jean-Claude Trichet, President of the European Central Bank. Photo: EPA

During a speech at the Conference of world politics in Marrakech, Mr Trichet said that "while a repeat of the experience of the 1930s is very fortunately not on the cards, there is certainly no room for complacency and vigilance must remain high".

Speaking about the issue of global economic governance in the wake of the financial crisis, Mr Trichet has a distinctive character of the decade before the crisis has been a "progressive and largely beneficial liberalization and integration", which had "benefited consumers worldwide."

He said that, during the crisis, protectionist and "beggar-thy-neighbour" policy could be expected to "these extreme circumstances and taking into account the political difficulties associated with their".

But the central banker has added that he had only increased moderately actual protectionist measures to restrict trade and an important outbreak of trade protectionism has avoided since the beginning of the crisis.

But he warned that "more protectionist pressures could be on the pipeline" and urges vigilance."Firstly, evidence investigation shows that public pressure for more economic protection not only has been editing since the mid-2000s, know well in advance of the crisis, but has intensified since its beginning, especially in the last months," he said.

His comments came as the decision of the Government of China struck the United States to launch an investigation into the charges subsidized producers of green technologies, saying the move sent a bad signal trade protectionism.

Speaking on moves the EU to put its house in order for his contribution to the economic and financial stability, Mr Trichet said that more ambitious reform of the EU budget rules are necessary for the eurozone as those proposed by the European Commission.

Referring to the Commission's proposals to strengthen economic governance, published on 29 September, Mr Trichet said: "a number of Commission proposals are going in the right direction, but for the euro area more ambitious reforms are necessary to ensure the smooth functioning of monetary union."

He added that all deadlines in the excessive deficit procedure should signifiacntly réduit.les sanctions should be applied to almost automatically and in some cases, the reduction of the debt must be more amibtious as proposed by the Commission.

Replying to a question about plans reserve US Federal, which opened the door to another series of relaxation of quantiative - Mr Trichet said that "no Central Bank considers appropriate trigger inflation at the present time.

He added that he was "totally against" changing target inflation of the eurozone, saying that livestock 2pc target would "dire consequences" for inflation expectations and increase volatility.

Mr Trichet went on saying that Governments must run balanced medium-term budgets for business and consumer confidence: "recovery comes confidence."

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