Eurogroup meeting / European Stability Mechanism meeting / Economic and Financial Affairs Council: IMF press conference
Lieu: Luxembourg (town), Luxembourg - Council
End production: 20/06/2011 First transmission: 20/06/2011
John Lipsky, IMF acting Managing Director, meet the Eurogroup to conclude the discussion of the 2011 Article IV mission of the IMF with the euro area.
In a press conference following the meeting he presented their findings and said that the recovery is broadly sound, but the sovereign crisis in the periphery remains a risk and will require continued action and attention to avoid it causing trouble in the core and spilling over to the rest of the world. He also said that regardless of the crisis in the periphery, the ongoing efforts to secure a dynamic and resilient monetary union remain relevant and should be further strengthened.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||General view of the press conference room
||SOUNDBITE (in ENGLISH) John Lipsky, IMF Acting Managing Director: We have two main messages. First: the recovery in the euro area economy is broadly sound but the sovereign crisis in the periphery remains a risk and will require continued action and attention to avoid it causing troubles in the core and spilling over the rest of the world. But second, regardless of the crisis in the periphery, the ongoing efforts to secure a dynamic and resilient monetary union to boost potential growth in the euro area economy remain very relevant and should be further strengthened.
||Cutaway journalists attending the press conference
||SOUNDBITE (in ENGLISH) John Lipsky: the euro area is a globally important economy. Our analysis suggests that the spillovers from the ongoing difficulties in the periphery are relatively small. But it also shows that the crisis would be felt much more strongly around the world if it spread to the banks in the core of the euro area.
||SOUNDBITE (in ENGLISH) John Lipsky: You asked what could happen if all things went wrong. We are concentrated on making sure they go right and our focus is on completing the conditions necessary to move the existing programme forward. We have viewed a very credible commitment by the Greek authorities. The new minister for finance issued a statement underscoring their commitment; we will have legislative action by definition before we move forward. We expect that to occur relatively shortly and well in time for the action of our board.