BRUSSELS, May 24 (Xinhua) -- European Union (EU) leaders expressed their "strong desire" Wednesday to keep debt-laden Greece in the eurozone, but failed to reach consensus over the issue of eurobonds to rescue the bloc's troubled economies.
WE WANT YOU TO STAY
"We want Greece to remain in the euro area while respecting its commitments," European Council President Herman Van Rompuy said at a press conference after an informal dinner meeting of EU leaders which lasted more than five hours.
"I reiterated the Commission's strong desire that Greece should remain a member of the euro area and that we will continue to do everything in our power for this to happen," European Commission President Jose Manuel Barroso said in a statement earlier Wednesday.
The newly-elected French President Francois Hollande also struck a supportive note.
Speaking to reporters as he arrived for the meeting, Hollande said "France wants the Greeks to remain in the eurozone and the Greeks must respect the engagements which have been made, but at the same time the eurozone must show that it is willing to support Greece."
Following a meeting with Greece's interim Prime Minister Panagiotis Pikrammenos, Barroso stressed the Commission's commitment to maintain financial support for Greece as long as is necessary, assuming Greece maintains its commitment to implement the structural reforms that are essential for a return to growth.
HONOR YOUR COMMITMENT
"Fully aware of the significant efforts" made by the Greeks, EU leaders have urged Greece to stick to its commitments to the austerity measures and structural reforms outlined in the second international bailout program.
Van Rompuy said continuing austerity measures and structural reforms would be "the best guarantee for a more prosperous future in the euro area" and called upon the forthcoming new Greek government to stand by its promises.
The European Council President offered "carrots" to Greece by promising more financial support to the country and "ensuring that European structural funds and instruments are mobilized to bring Greece on a path towards growth and job creation."
While acknowledging the "huge sacrifices" that the Greek people have made, Barroso said the full implementation of the austerity measures promised under the second bailout package is the "least difficult and the quickest way" for Greece to return to growth and job creation.
PREPARING FOR THE WORST
While hoping for the best, eurozone countries have admitted that they are preparing for the worst.
Belgian Finance Minister Steven Vanackere on Wednesday hinted that eurozone countries were preparing for a possible Greek exit from the single currency area, the latest indication of the seriousness of the Greek debt situation and the rising risks of its exit from the euro.
"We must insist on efforts to avoid an exit scenario, but that doesn't mean we are not preparing for eventualities," Vanackere told reporters as he arrived for the dinner meeting.
He considered such preparations a responsibility of a eurozone government. "All the contingency plans come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid," he said.
"I believe many countries have their contingency plans for the things they want to avoid at all cost, like terrorist attacks, and to say that we don't have a contingency plan would be irresponsible," Vanackere said.
DIVISIONS ON EUROBONDS REMAIN
Eurozone members have long debated the pros and cons of issuing eurobonds to help propel the debt-laden zone out of the crisis, and the divisions over the issue appeared more acute after Wednesday's meeting as French President Hollande stepped up the push for the issuance of such bonds in the face of Germany's articulated opposition.
"There is perhaps a means by which to mutualize ... future debt to enable countries ... to access financing more easily on (money) markets," he told the press after the meeting. It was the first time for him to attend a gathering of EU state leaders and heads of government.
He said that eurobonds could help countries paying high borrowing costs and thus be conducive to reviving economic growth, and that he wanted to see eurobonds "written into the EU agenda."
German Chancellor Angela Merkel, who has insisted the launch of eurobonds would be detrimental to the financial discipline of the single currency zone as the mechanism potentially encourages irresponsible spending, described discussions concerning the eurobonds at the meeting as "balanced." However, she said, there were "broad differences."
Merkel had the support of Finland and the Netherlands, while Hollande had Belgium and Austria on his side in the eurobonds debate. It's expected the two sides will find it hard to convince one another in the coming months.
No comments:
Post a Comment