ECB's Wellink says concerned over govt budget deficits

From Reuters.com

"Budget deficits, the United States is an example, are running up dramatically. There will be tension and pressure on those markets unless governments are able to do what they are promising," Wellink said.

Wellink also warned that the U.S. government's assumptions were "particularly optimistic."

Discretionary policy, such as tax cuts, were measures that will be difficult to reverse in the future, and Wellink singled out the United States, which he said faced deficits of 12 and 8 percent for 2009 and 2010 respectively.

"The government has faith that budget finances will quickly improve in later years but the assumptions for this confidence are particularly optimistic," Wellink said on the U.S. budget outlook.