HELSINKI (MNI) - European Central Bank Governing Council member Erkki Liikanen danced lightly around the subject of Greece in a Finnish radio interview, stressing instead that all nations with large deficits must get them under control.

"Greece is committed to getting the situation under control and its budget deficit under 3% by 2010. I don't want to comment further about one nation," Liikanen, who heads the Bank of Finland, told the Finnish station YLE Radio Puhe. Though he later added, "I trust that Greece will get control of the situation."

He noted that the U.S. budget deficit, which is over 10% of GDP, is "much more than the eurozone average" and that in many EU countries, the deficit is greater than the statutory limit of 3%.

"It's important that every nation get its situation under control," Liikanen exhorted. "Large deficits affect ability to borrow money - interest rates. The situation has to be solved."

Liikanen also said that the current level of ECB interest rates is "appropriate," and that there is "no upside risk to prices." He later elaborated that there was "a balance" in inflationary pressures, with labor and indirect taxes on the upside and the economy on the downside. So, "all in all the whole situation is in balance," he said.

Liikanen declined to comment on when or whether the ECB might begin raising borrowing costs, saying, "we never comment on upcoming rate rises."

He stressed the importance of anchoring inflation expectations in the medium term around the ECB's price stability goal of near but below 2%. This removes inflation as a factor when making economic decisions and helps ensure growth and employment, he said.

Liikanen also noted that there is "slightly positive news about the world economy" as a whole, with the impetus coming from the emerging market countries, especially India, China and Brazil.

However, he conceded that there is still a chance of a W-shaped recovery in the global economy. "There is a risk of a slight slowdown in growth," he said, noting that at the moment the economies of many countries are being stimulated both fiscally and monetarily by official policies implemented to counter the financial crisis.

He repeated the standard line that China should do more to transition to a demand-driven rather than an export-driven economy. "The Chinese surplus is an inbalance in world economy," he said. "It would be good if the savings ratio would decrease and exports wouldn't play such a significant role."

At the same time, he added, "the U.S. should import less from China."

Asked about the U.S. economy, Liikanen said, "it looks better. I think there are positive signals."