European Council: extracts from the press conference by Herman VAN ROMPUY, President of the European Council and José Manuel BARROSO, EC President

Type: News   Reference: 69311   Duration: 00:02:40  Lieu: Brussels, Belgium - EC
End production: 25/03/2010   First transmission: 25/03/2010
Countries that use the euro have agreed on a financial backstop for Greece that would combine loans from other eurozone governments and the International Monetary Fund, a move aimed at stopping the government debt crisis that has undermined the shared currency. José Manuel Barroso, EC President said: 'This is a European coordinated approach with the participation of IMF. I think that it is the right decision at this time to face what is an exceptional problem that we have in our Member States, the members of the European area, considering also the implication that it could have for the stability of our economic and monetary Union.' The bailout program could be used only if Greece is shut out of normal market financing such as selling government bonds, and would require all 16 countries to agree on releasing the loan funds. It also calls for tougher rules to keep government finances from getting out of control and causing another such crisis. The plan was an attempt to stem a government debt crisis that has raised concerns that Greece's troubles might spread to other euro governments with troubled finances, such as Portugal and Spain, raising borrowing costs and worsening the large debt loads governments have taken on as a result of three years of global economic turmoil.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Herman Van Rompuy, President of the European Council and José Manuel Barroso, EC President at the press conference 00:00:06
00:00:11 Cutaway 00:00:07
00:00:18 SOUNDBITE (French) Herman Van Rompuy: But this is a mechanism where, on the one hand, you have the IMF and on the other hand, bilateral loans coming from the Members States of the Eurozone. I should indicate that the main part of the funding will be European. 00:00:27
00:00:45 Cutaway 00:00:07
00:00:52 SOUNDBITE (English) José Manuel Barroso, EC President: This is a European coordinated approach with the participation of IMF. I think that it is the right decision at this time to face what is an exceptional problem that we have in our Member States, the members of the European area, considering also the implication that it could have for the stability of our economic and monetary Union. 00:00:26
00:01:18 Cutaway 00:00:07
00:01:25 SOUNDBITE (French) Herman Van Rompuy: First of all, we don't believe this is the miracle cure, this is a part of the key solution. From the beginning, a number of the Member States were in favour of IMF intervention, other who was not in favour. So for number of weeks now, a debate has been going on, and we ended up agreeing on a mix formula in which Eurozone Member contribution play a dominant role. 00:00:39
00:02:04 Cutaway 00:00:06
00:02:10 SOUNDBITE (English) José Manuel Barroso: What was essential for us was that we would guarantee that it will be a European mechanism, a mechanism of the Eurozone and this is made very clear in the decision adopted on the basis of unanimity. I can tell you also that we are working hand in hand with the IMF, in different situation in other Member States of the European Union. 00:00:23
00:02:33 Cutaway 00:00:07
00:02:40 End 00:00:00
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