Trichet warns countries losing fiscal credibility

PARIS Nov 17 (Reuters) - The fiscal situation in some European countries is so bad that there is a danger markets will lose faith in them, European Central Bank President Jean-Claude Trichet warned in an interview on Tuesday.

"Some countries are in a relatively favourable position because their past management was wise and prudent, while others are already very close to losing their credibility," he told French newspaper Le Monde, saying it could stall the recovery process.

"The success of the recovery in Europe depends on the confidence of investors in the creditworthiness of sovereign issuers."

He also said third quarter euro zone GDP data, which showed the bloc pulled out of recession, confirmed the ECB's base scenario of a progressive pickup in the economy. (Reporting by Anna Willard, writing by Marc Jones and Sakari Suoninen)