Eurogroup meeting: extracts from the press conference by Jean-Claude JUNCKER, President of the Eurogroup, Olli REHN, European Commissioner for Economic and Monetary Affairs and Klaus REGLING CEO of the European Financial Stability Facility (EFSF)

Type: News   Reference: 79968   Duration: 00:04:08  Lieu: Luxembourg (town), Luxembourg - Council
End production: 03/10/2011   First transmission: 03/10/2011
Olli Rehn, Member of the EC in charge of Economic and Monetary Affairs, Jean-Claude Juncker, President of the Eurogroup and Klaus Regling CEO of the EFSF held the Eurogroup press conference. Commissioner Rehn informed the Eurogroup about the progress of the ongoing fifth review of the implementation of the Greek adjustment programme. On 28th September, the Troika (EC, ECB and IMF) decided to resume the mission to Greece and asked its teams to return to Athens and to resume policy discussions. The Eurogroup will hold an additional meeting as soon as possible in October to discuss the situation in Greece and consider the disbursement of the sixth tranche, on condition that the Troika delivers a positive finding of the review. In that case, the IMF’s Executive Board could consider the 5th review in time for the actual disbursement at the end of October. This would ensure that the Greek authorities are in a position to continue to meet their financial obligations. Ministers discussed both the state of play in the current process of ratification of the reform of the European Financial and Stability Facility (EFSF) in euro area Member States and the concrete provisions to implement all elements of the agreements.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Arrival of Olli Rehn, Member of the EC in charge of Economic and Monetary Affairs, Jean-Claude Juncker, President of the Eurogroup and Klaus Regling EFSF CEO 00:00:15
00:00:20 General view of the press room 00:00:04
00:00:24 SOUNDBITE (English) Jean-Claude Juncker: we welcomed the bold additional measures recently taken by Greece, these measures will contribute reaching towards reaching the agreed fiscal targets for 2011 and 2012, these two years being taken together and these two measures are a strong signal of Greece full commitment to strictly implement the medium term fiscal strategy. We call for a rapid legislation and entry into force of these measures. 00:00:36
00:01:00 Cutaway of the press room 00:00:04
00:01:04 SOUNDBITE (English) Jean-Claude Juncker: we had no one advocating a default for Greece, everything will be done to avoid that, it will be avoided and nobody was advocating an exit of Greece out of the euro area. I have to firmly deny all these rumours indicating that Greece could be invited or could decide to leave the euro area and I have to firmly deny all rumors concerning any kind of Greek default. 00:00:39
00:01:43 Cutaway of the press room 00:00:04
00:01:47 SOUNDBITE (English) Olli Rehn: I note positively the eurozone agreement on collateral, it is a balanced and fair solution, I am satisfied that this issue is now out of the agenda. 00:00:16
00:02:03 Cutaway of the press room 00:00:04
00:02:07 SOUNDBITE (English) Olli Rehn: on the policy side the legislative package that the Council will approve tomorrow must become our new key stone of the system. These are very powerful tools for fundamentally changing the way the economic and monetary union is governed. This means to anticipate trouble in public finances and to detect risky economic imbalances and to correct these deviations before they put us all at risk. 00:00:37
00:02:44 Cutaway of the press room 00:00:04
00:02:48 SOUNDBITE (English) Klaus Regling: countries that do receive collateral have the obligation to pay their capital into the future ESM in one tranche in the first year when the ESM is created, while the normal approach is that countries pay and their capital over 5 year period. Second the profits from the EFSF from the countries that do receive collateral would be reduced for countries that receive collateral. Third point, in case of default, the collateral will only be paid out after time when the EFSF loans mature, which is 15 to 30 years, that means the collateral is frozen for a very long period. Finally the country that request collateral get no more than 20% of the increase in its guarantee. Those are the compensations for receiving collateral, it is a price to be paid, that's why it is unlikely that any other country will make this request. 00:01:15
00:04:03 General view of the press room 00:00:05
00:04:08 END 00:00:00
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