Extracts from the press conference by Olli Rehn on the Excessive Deficit Procedure

Type: Summary of press conference   Reference: I-071984   Duration: 10:03:14  Lieu:
End production: 11/01/2012   First transmission: 11/01/2012
On 11/01/2012 during the press conference in Brussels, Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, announced that Hungary has not made sufficient progress towards a timely and sustainable correction of its excessive deficit. He told journalists that the European Commission has proposed to move to the next stage of the Excessive Deficit Procedure (EDP) and recommended that the Council of Ministers decided that no effective action had been taken to bring the deficit below 3% of GDP in a sustainable manner. On the contrary, Belgium, Cyprus, Malta and Poland - the other countries that were at risk of not meeting their deadlines of 2011 or 2012 to correct their excessive deficit - had taken effective action. Therefore, the Commission considered that no further steps in the excessive deficit procedure were necessary for these four countries, though it would continue to monitor budgetary developments closely. This was the first time the EC applied the new rules of the strengthened Stability and Growth Pact (SGP), which were part of the so-called "six-pack" on economic governance, which entered into force on 13/12/2011.

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10:00:00 Title 00:00:05
10:00:05 General view of the press conference 00:00:03
10:00:08 Soundbite (in ENGLISH) by Olli Rehn, Vice-President of the EC in charge of Economic and Monetary Affairs and the Euro, saying that Belgium, Cyprus, Malta and Poland have taken effective action in response to the Council recommendations to correct their excessive deficits. This is unfortunately not the case of Hungary. 00:00:34
10:00:43 Cutaway of the audience 00:00:05
10:00:48 Soundbite (in ENGLISH) by Olli Rehn on Belgium, saying that he welcomes the commitment by the Belgian government, especially in the context of the weakening economic conditions. This will help to curb the rise of the already very high public debt and to reinforce confidence in the Belgian economy. 00:00:21
10:01:10 Cutaway of the audience 00:00:04
10:01:14 Soundbite (in ENGLISH) by Olli Rehn on Hungary, saying that Hungary has also taken measures but these are unfortunately not sufficient to correct the deficit in a sustainable and credible manner. 00:00:15
10:01:30 Cutaway of the press 00:00:04
10:01:34 Soundbite (in ENGLISH) by Olli Rehn saying that as Hungary is not a member of the euro, it won't face the prospect of a financial sanction under the "six-pack". It could nevertheless face a suspension of the commitments from the cohesion fund from January 2013 onwards. Saying that in the absence of correction from Hungary he will coordinate any further step in that direction with Commissioner Johannes Hahn (Member of the EC in charge of Regional Policy). 00:00:34
10:02:08 Cutaway of a cameraman 00:00:03
10:02:11 Soundbite (in ENGLISH) by Olli Rehn still on Hungary, saying that today's decision is a strong incentive for Hungary to ensure the sustainability of its public finances which is in the fundamental interest of the Hungarian people. Sound public finances are a necessary pre-condition for sustainable growth, jobs, and for reinforcing the confidence in the Hungarian economy. 00:00:33
10:02:45 Cutaway of a man writing 00:00:04
10:02:49 Soundbite (in ENGLISH) by Olli Rehn on the economic forecast, saying that the European Commission's pessimistic scenario (of last autumn) seems to have materialised. The Commission is currently in the process of revising the economic forecast taking into account both the incoming hard data and incoming soft data relative to economic sentiment indicators. 00:00:25
10:03:14 Cutaway of the press room 00:00:05
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