Local view for "http://purl.org/linkedpolitics/eu/plenary/2011-05-11-Speech-3-560-000"
| Predicate | Value (sorted: default) |
|---|---|
| rdf:type | |
| dcterms:Date | |
| dcterms:Is Part Of | |
| dcterms:Language | |
| lpv:document identification number |
"en.20110511.35.3-560-000"2
|
| lpv:hasSubsequent | |
| lpv:speaker | |
| lpv:spoken text |
"Mr President, Europe’s economic outlook today is quite dualistic. On the one hand, the recovery in the real economy has taken hold and is becoming more solid and self-sustaining. On the other hand, it is uneven and we still face turbulence in the financial markets, especially in the sovereign debt markets.
In any event, while the fiscal effort of the past year is unprecedented – over 7% of GDP, or EUR 20 billion – it is clear that Greece has to seriously reinforce the implementation of the economic reforms, achieve a breakthrough in the privatisation programme, and then ensure its full implementation.
It is absolutely necessary and urgent that the domestic disputes are put aside and cross-party support achieved for the recovery of Greece. It is an illusion to think that there were any real alternatives to the economic reform programme. This is, therefore, a real test of the credibility of the Greek political forces, both government and opposition, and ultimately, of the will of the Greek people.
The present stage of the crisis is a closely intertwined combination of sovereign debt crisis and banking sector fragilities. We cannot solve one without solving the other; we must resolve both in parallel. Therefore, the banking sector repair must be completed to safeguard the provision of credit to the real economy, to enterprises, households, individual citizens. A new round of bank stress tests is being conducted. The results will guide the necessary restructuring and recapitalisation of the banking sector. Ahead of the publication of the results, the Member States will need to release their strategies for possible restructuring or recapitalisation of their vulnerable institutions. Such plans should be ready as soon as possible and should include a detailed timeline.
In conclusion, the fundamental reforms of financial regulation and economic governance in the European Union are profoundly changing the economic and financial architecture of Europe. In the near future, a whole new set of rules will provide the basis for stable, sustainable growth and job creation.
In the meantime, we must continue our work to safeguard financial stability and thus protect economic recovery in Europe, which is the key for sustainable growth and improving employment. This continues to call for very difficult decisions at European and national levels. I trust we all have the wisdom and courage to take such decisions.
Thus, the key task of the EU’s economic policy now is to contain the sovereign debt crisis and thus protect the ongoing recovery in the real economy of Europe. Now, with the EU-IMF programme of Portugal waiting for its adoption next Monday in the Eurogroup Ecofin meeting, we are beginning another chapter in this necessary endeavour.
Last week, the Portuguese Government presented an economic reform programme following our productive negotiations with the government, the opposition, civil society, social partners and the academic world. These talks are reflected in the programme. It is a Portuguese programme that deserves the support of the European Union and of the International Monetary Fund. Our joint assistance of EUR 78 billion shows the strong commitment to help Portugal and safeguard the financial stability of Europe.
It is a demanding but fair and necessary programme of adjustment. It will require major efforts on the part of the Portuguese people. Great attention has been paid in its preparation to social fairness and protecting the vulnerable. Europe stands by Portugal for the sake of the country and for the sake of economic stability in Europe.
Considering recent developments, it would be wrong to say that the debt crisis is no longer a burden for the European economy, yet it would be equally wrong to claim that the EU has not responded to the crisis. Consider this: only a year ago, the euro area Member States agreed on a conditional loan package to Greece in order to prevent a meltdown of our financial system. Within this one year, from last May until today, we have created effective stability mechanisms which were at first temporary and which will then become permanent as of 2013. We are implementing a very systematic programme of fiscal consolidation in all Member States, and they are committed to bold structural reforms to boost growth and job creation.
We are, with your active support, addressing the systemic weaknesses in EU economic governance in order to prepare for a profound change in the policy making landscape of the European Union. We are, again with your support, addressing the shortcomings of our integrated financial market by toughening financial regulation and implementing the new supervisory architecture.
At the present juncture, financial stability is being safeguarded by the EU-IMF stability mechanisms and especially by the actions that the Member States – especially the vulnerable Member States – are themselves taking. Still some people argue that the crisis management strategy, especially with regard to Greece, is failing. I disagree with this view. The first – and the primary – objective of our strategy has been to prevent another cardiac arrest of the kind that followed the failure of Lehman Brothers in September 2008 and subsequently led to the financial crisis and economic recession worldwide. We have done that and thus protected the ongoing recovery in the real economy in Europe.
Secondly, we have been able largely to contain the distress in the sovereign debt markets to the three countries in the programme. As seen in the bond spreads, Spain is decoupling from these countries thanks to its determined action on the fiscal, financial and structural fronts.
Thirdly, the programmes in both Greece and Ireland are still in the relatively early stages. The Greek programme has been running for one year and its counterpart in Ireland for about five months of the three years of the programme. Both countries are pursuing very ambitious programmes of fiscal consolidation, structural reform and financial repair. Our review mission is currently in Athens with the ECB and the IMF to assess the implementation of the programme and to prepare an updated analysis of the debt sustainability of Greece. The work will be concluded in the coming weeks, which will facilitate well-informed decisions."@en1
|
| lpv:unclassifiedMetadata | |
| lpv:videoURI |
Named graphs describing this resource:
The resource appears as object in 2 triples