Extracts from the press conference by Olli Rehn on the entry into force of the "Six Pack" legislative package (part 1)
Type: Summary of press conference
End production: 12/12/2011 First transmission: 12/12/2011
At a press conference on 12 December 2011 in Brussels, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, outlined the EU economic governance "Six-Pack" which entered into force the following day.
On 13 December 2011, the reinforced Stability and Growth Pact (SGP) entered into force with a new set of rules for economic and fiscal surveillance. These new measures, the so-called "Six-Pack", are made of five regulations and one directive proposed by the European Commission and approved by all 27 Member States and the European Parliament in October 2011
This change represents the most comprehensive reinforcement of economic governance in the EU and the euro area since the launch of the Economic Monetary Union. In line with 8-9 December European Council agreements, the legislative package already brings a concrete and decisive step towards ensuring fiscal discipline, helping to stabilise the EU economy and preventing a new crisis in the EU.
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
||SOUNDBITE by Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, (in ENGLISH) saying that, contrary to some media reports, the result of this summit (8-9 December 2011) is better than first meets the eye; while the Commission would have certainly preferred a treaty at 27, this fiscal compact treaty is, policy-wise, bold and effective and legally viable.
||Cutaway of press
||SOUNDBITE by Olli Rehn (in ENGLISH) saying that the new economic governance is essentially pre-emptive and should have an impact in order to countries take corrective action before the problems are so deep that it would not be meaningful to take action; that's why it is so important that the sanctions are valid already in the preventive arm of the Stability and Growth Pact, and then gradually tightened in case the country concerned does not take corrective action; saying that he sent a letter to five Member States in November and in all these countries, action has been taken in order to remedy the situation; the Commission is currently assessing whether this is sufficient or not; Belgian budget has been produced recently and the Commission is still receiving information on the concrete details of this budget; they want to be sure that the target is respected.
||SOUNDBITE by Olli Rehn (in ENGLISH) saying that in the EU, joining the euro is the rule and having an opt-out is an exception; so it is only logical that the European Commission is implementing legal provisions relative to the functioning of the euro area.
||SOUNDBITE by Olli Rehn (in ENGLISH) saying that that in March there is going to be an assessment whether the combined ceiling of the ESM and the EFSF at 500 billion euro is adequate; in addition to that, there is an agreement on an increase of bilateral resources to the IMF; all these will significantly strengthen the financial firewalls to contain the contagion effect, help calming down the markets and thus to protect sustainable growth and employment in Europe.
||Cutaways (2 shots)