ECB nominee says growth hit by confidence

Addressing the European Parliament's economic and monetary affairs committee, Lorenzo Bini Smaghi put the eurozone's "disappointing" growth down to fears about the future.

"I think that the main reason is that consumers and entrepreneurs don't have confidence in the future," he said.

He defended the ECB's record, saying it "has acted very consistently".

"The task of monetary policy is to help growth but only to the extent that it does not push inflation above two percent," he said.

Bini Smaghi also said a revision to the EU's Stability and Growth Pact would still encourage budget discipline.

The commission now has the power "to push countries to make stronger adjustments in good times".

"I'm confident that despite all the uncertainties the pact will continue to promote budget discipline," he said.