Extracts from the press conference by Joaquín Almunia on his report on the 10 years of Economic and Monetary Union
Type: Summary of press conference
End production: 07/05/2005 First transmission: 07/05/2008
In its report on 10 years of Economic and Monetary Union presented at a press conference on 7 May 2008 in Brussels, the European Commission said that the Euro has been and still is a resounding success, particularly welcome in these times of uncertainty and worrying increases in the prices of energy and food, but there is still work to be done. Joaquín Almunia, Member of the EC in charge of Economic and Monetary Affairs, told journalists that the Euro area's governance and coordination of economic policies should be improved. Finally, the Commissioner confirmed he recommended that the Council abrogates the excessive deficit procedures (EDP) for Italy and Portugal in the Euro area since their budget deficit fell below 3% of GDP in 2007 and is projected to remain below this ceiling also in 2008 and 2009, and for Slovakia and the Czech Republic outside the Euro area as well.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior view of the European Commission building
||General view of the press conference
||Joaquín Almunia, Member of the EC in charge of Economic and Monetary Affairs, (in ENGLISH) on the abrogation of the excessive deficit procedures (EDP); saying that they have adopted four proposals for abrogation of four excessive deficits: Italy and Portugal in the Euro area and Slovakia and the Czech Republic outside the Euro area; for Slovakia, it was one of the conditions to fulfil the criteria; in the case of the Czech Republic, they have been able to correct the excessive deficit one year before this was included in the Council recommendation; this is also a matter of satisfaction to give this positive assessment to the Czech Republic consolidation strategy; in the case of Portugal and Italy, they were expecting this correction; this is also a matter of satisfaction; in all the four cases, at the same time that they send these positive proposals for the abrogation of the excessive deficit, they recall the authorities that they need to pursue and continue their fiscal consolidation; the final objective is not only to correct the excessive deficit but to achieve a balanced position of their public finances over the medium term
||Cutaway of press
||Joaquín Almunia (in ENGLISH) on the 10 years of Economic and Monetary Union; saying that regarding the first decade of EMU, they consider that it has been an economic and political success for the reasons of prices stability, lower interest rates, protection against external shocks, better integration, increased flows of trade and investments, and so on; he will not repeat the long list of positive achievements of EMU; but not all the achievements that they were expecting from EMU ten years ago have been achieved or have been fully achieved; there are some aspects that clearly offer results below the initial expectations, for instance: growth in EMU, the capacity to adjust to new circumstances in a flexible way, the capacity to reduce internal divergences and to have a more coherent transmission of the monetary policy decisions of the European Central Bank throughout the economies of the Euro area; this should be improved in the second decade