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Greece, Eurozone 'not out of the woods yet,' says EU Economics Commissioner Rehn

928 views · Published 25 March 2010 · 1:31 · Indexed 28 September 2026

Channel: Euractiv · 2010 · News & Politics

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From EbS:
At a press conference today in Brussels, Olli Rehn, Member of the EC in charge of Economic and Monetary Affairs, said he wants European Union Leaders to reach a political agreement tomorrow or Friday on an aid facility for Greece, in case the country asks for financial help. 

EU Leaders are holding a two-day summit in Brussels starting tomorrow, amid divisions about whether to give Greece money or send the country to the International Monetary Fund.

The European Commissioner said he would rather have an EU or euro zone aid facility for Greece than IMF money.

We have a sense of urgency and we are seeking for a solution which should be based on a clear lead of the European Union and a policy conditionality defined by the EU, he added.

SOUNDBITE (English) by Olli Rehn, Member of the EC in charge of Economic and Monetary Affairs: we had a very serious and substantive debate on Greece in the College (meeting of the European Commissioners) today. Greece is now on track to meet the 4% target of deficit reduction this year 2010, following the bold and convincing measures the Parliament decided earlier this month. This can be made a turning point in the Greek fiscal history and economic development. But Greece nor the euro zone are not out of the woods yet as there are still concerns over the financial stability. Therefore the Commission encourages the euro area Member States to take a political decision on a mechanism to ensure financial stability in the euro area as a whole, a mechanism which could be swiftly activated, in the case of need and in conformity with the treaty, and without any automaticity. The Commission is ready to put in place such a European framework for coordinated and conditional assistance which could be used if needed and if requested. We are working closely and intensively, together with all euro area Member States, the president of the European Council and of the Eurogroup in order to reach such a solution this week in the context of the European Council. (What about) a possible involvement of the IMF? The Commission's view is that we prefer a euro area facility for a European problem. There needs to be a European lead and policy conditionality decided by the European Union, and in this case by the euro area Member States. We do not want to enter in any king of theological debate on the IMF. I see the IMF as a partner and we already now cooperate very well with the IMF. We have a sense of urgency and we are seeking for a solution which as I said should be based on a clear lead of the European Union and a policy conditionality defined by the EU.

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