Comments by EU finance officials, ministers
European finance ministers and officials met on Monday to discuss ways to strengthen their financial rescue fund, preparing the ground for a "comprehensive package" of measures EU leaders hope to agree in late March.
February 15, 2011 / 08:41 IST
European finance ministers and officials met on Monday to discuss ways to strengthen their financial rescue fund, preparing the ground for a "comprehensive package" of measures EU leaders hope to agree in late March.
Following are comments after their talks:
Eurogroup president Jean-Claude Juncker
On Greek economic reform measures:
"We've taken stock of the implementation of the Greek adjustment programme on the basis of the recent mission of the Commission, the ECB, and the IMF. I myself had occasion to go to Greece last week, so I was able to convey my own impressions."We were satisfied with the impressive performance of Greece. The adjustment carried out in Greece is remarkable, both in fiscal and structural terms. Nonetheless, the efforts need to continue and need to be stepped up in some areas."
On reinforcing the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM):
"Today we discussed various measures to reinforce the EFSF, the European Financial Stability Facility, in order to make sure that it is as effective as it needs to be."What I'd like to say is that both the EFSF and ESM are not the subject of overall agreement until everything is agreed. Nothing is agreed until everything is agreed."There are all sorts of ideas about competitiveness, well, about improving competitiveness. All these ideas are, of course, part of the comprehensive response. So, in some respects, we have to await the results of the European Council ... (on March 11) before we can agree on everything."
On lending capacity of ESM:
"We exchanged views on the European Stability Mechanism. Here again, we're proceeding at a satisfactory pace, but on this point, as on others, I have to repeat that so long as there's no agreement on everything, there's no agreement on anything."But we're making good progress."We've already agreed on the volume of the lending capacity of the ESM, THE European Stability Mechanism. We've agreed on the amount of 500 billion (euros), and this will be subject to regular revision."
On the effective lending capacity of the ESM:
"The loan capacity of the Stability Mechanism needs to be an effective capacity."
On possible changes to the pricing of loans granted to Greece and Ireland:
"The pricing is an issue under debate."
On IMF involvement in the ESM:
"The IMF of course will be involved, as will voluntary participation by non-euro members."
On proposed flexibility of the EFSF:
"I'm not really ready to develop in detail the different options which are under examination. We were addressing these different options, we were discussing the virtues, the merits of the different options, the advantages and disadvantages."No decision has been taken so far and we will pursue this debate at the next meeting or next meetings, but it does not make sense to privilege one option or another."
On candidates for the ECB executive board:
"There was a Belgian and a Slovak candidature.... Both candidates enjoy an excellent reputation but it seemed to us that the qualities and lengthy experience in banking supervision in particular of Mr Peter Praet, it seemed to us that these were decisive, hence this proposal which we will make to our bosses in the next few days."
Economic and financial situation in the euro area:
"We consider that the economic recovery is becoming more and more vigorous and it is more and more self-reliant. Over the last few quarters growth has surprised upwards and the prospects remain encouraging."The situation on world markets has become quite stable since the beginning of the year but the situation on sovereign debt markets remains disturbing. That is why we decided a few months ago that we have to adopt a comprehensive response to maintain stability in the euro area."
EU economic and monetary affairs commissioner Olli Rehn
On IMF involvement in the ESM:
"The IMF involvement will be one part of the ESM in the future and I can say that after one year of working with the IMF in Europe, in the euro area, we have excellent cooperation and I think we have both benefited from our respective experiences..."
Dutch finance minister Jan Kees De Jager
"What has been agreed on is that nothing is agreed until everything is agreed. We did move towards each other on including competitive strength and budget austerity as part of the comprehensive package."We are working towards the March European Council (meeting)." Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
