Trichet sees Europe growth around potential

WASHINGTON (Reuters) - Europe's economy will likely grow near its potential rate despite a downturn in the U.S. housing market that has engulfed financial firms around the globe, European Central Bank President Jean-Claude Trichet said.

"Our baseline scenario continues to call for the European economy growing around potential," Trichet said in an interview aired on CNBC on Monday. The cable channel said the interview was conducted over the weekend.

Trichet added that economic uncertainties were "augmented" and said it was still to be seen whether U.S. market turbulence would have an impact on the European economy.

The comments echoed a series of remarks by Trichet in recent days after the ECB left its interest rate unchanged on September 6. In a news conference following the interest rate decision, Trichet also said the level of uncertainty was "augmented".

Earlier on Monday, summing up talks among officials from the Group of 10 leading economies, Trichet said central bankers were keeping a close eye on financial markets and remained "alert at a global level".