French PM: Eurozone to do everything for stability
French Prime Minister Francois Fillon said on Thursday that eurozone members would do "absolutely everything" for the bloc's economic stability, but stressed no additional bail out funding was currently required.
January 14, 2011 / 08:54 IST
French Prime Minister Francois Fillon said on Thursday that eurozone members would do "absolutely everything" for the bloc's economic stability, but stressed no additional bail out funding was currently required.
His comments, during a visit to London to meet British Prime Minister David Cameron, came as German Finance Minister Wolfgang Schaeuble said in Berlin that eurozone governments were working on a comprehensive package to solve the deep-rooted debt crisis that they hoped would be agreed by February or March."The eurozone members, and especially France and Germany, are ready do everything... absolutely everything to ensure the stability of the eurozone," Fillon said in a speech.Speaking later at a news conference with Cameron, Fillon said that that there was no current need for additional funds to bail anyone out. Speculation has mounted that Portugal and Spain may have to seek bailouts to calm concern over national debts.Cameron said Britain wanted to see the eurozone resolve its problems, but would not commit itself to additional measures to prop up the single currency."We want a strong eurozone, we want it to sort out its problems, we won't stand in its way, but we are neither joining the euro nor are we going to be drawn into fresh and new mechanisms within the euro," Cameron said during a news conference with the French prime minister.Britain contributed around 7 billion pounds (USD 11 billion) late last year to the bailout of neighbouring Ireland but Cameron has been under pressure domestically to limit further financial support for eurozone countries.Britain is part of the 60.0 billion euro (USD 78.8 billion) European Financial Stability Mechanism safety net under an agreement signed last year by the former Labour government. However, Cameron said Britain would not be part of an agreement that replaces that mechanism in 2013.Markets have piled pressure onto Portugal in recent days, seeing it as the next eurozone country needing a bailout.Asked specifically about Portugal, Cameron said he did not think it was right to speculate about individual countries.Fillon said the eurozone needed a closer harmonisation of member countries' economic, fiscal and social policies.He also said the global economic recovery was not sustainable without better economic and financial regulation, something that Paris would strive for during its presidency of this year's G20."The global economic recovery cannot be sustained without better economic and financial regulation," he said.In an interview with The Times ahead of his meeting with Cameron, Fillon urged Britain to back Europe's efforts to save the euro currency, noting it would be "a catastrophe" for the British economy if the single currency failed. 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!
