ESM meeting/Eurogroup meeting:
Extracts following arrivals and doorsteps
Lieu: Luxembourg (town), Luxembourg - Council
End production: 08/10/2012 First transmission: 08/10/2012
The Treaty establishing the European Stability Mechanism (ESM) has been ratified by all 17 euro area member states. It entered into force on 27 September 2012, nine months earlier than initially foreseen. The treaty was signed by euro area member states on 2 February 2012. The ESM board of governors hold its inaugural meeting on 8 October 2012. The ESM is an intergovernmental institution based in Luxembourg, set up to provide financial assistance to eurozone member states experiencing, or being threatened by, severe financing problems, if this is indispensable for safeguarding financial stability in the euro area as a whole. The initial maximum lending capacity of the ESM is set at €500 billion. This is achieved with subscribed capital of €700 billion. As a permanent mechanism, the ESM will take over the tasks currently fulfilled by the European Financial Stability Facility (EFSF) and the European Financial Stabilisation Mechanism (EFSM). With the accelerated entry into force, the ESM will now operate alongside the EFSF for nine months. The most important decisions under the ESM will be taken by its board of governors (finance ministers) by mutual agreement. The ESM will have a board of governors and a board of directors, as well as a managing director. Klaus Regling, the chief executive officer of the EFSF, was appointed by the Eurogroup in July 2012 as managing director of the ESM.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Vitor Gaspar, Portuguese Minister for Finance
||Vasos Siarlis, Cyprus Minister for Finance
||Michael Noonan, Irish Minister for Finance
||SOUNDBITE by Maria Fekter, Austrian Federal Minister for Finance (In German) saying that: We have already signed the ESM, today it is about the constituent meeting, when we elect the chairmanship we will continue with the directors’ board that will deal with its . This way, Europe will have crisis equipment, a mechanism to manage crises in terms of states. We like our currency, so we are not only going to protect the currency through the ECB but also the Eurozone, namely the countries that come into difficulties.
||Vittorio Umberto Grilli, Italian Vice Minister for Economy and Finance
||Mario Draghi, President of the European Central Bank
||Luis de Guindos Jurado, Spanish Minister for Economic Affairs and Competitiveness
||SOUNDBITE by Luc Frieden, Luxembourgish Minister for Finance (In English) saying that: The requirement of Spain doesn't need additional help. We should deal when such a request when it comes but so far Spanish government is undertaking reforms which are going in the right direction.
I think we have to see the details of what they have decided, we will listen carefully what Spanish minister has to say today but from what I heard so far is going to the right direction.
We need first the report from the people we send on the ground, the ECB commission and the IMF to see what is the analysis of the situation and then we will see. Greece is doing a lot of efforts is very difficult times for them and I think we need to give them additional time if they require that does not require a lot of additional money. We should support Greece. However this is not the only restrain, as I have always said it requires that Greece is undertaking and continuing to undertake the reforms which the government is committed to do.
||Giannis Stournaras, Greek Minister for Finance
||SOUNDBITE by Jean-ClaudeJuncker, President of the Eurogroup (In English) saying that: We haven't any major decisions in Greece; we will be briefed by our Greek colleague and the member of the Troika on the outcome and the decisions which have been taken between the Greece and the Troika and no decisions will be taken today, it is an information session about this.
||SOUNDBITE by Wolfgang Schaüble, German Federal Minister for Finance (In German) saying that: It shows that we are moving step by step but obviously we are not moving as fast as the press and the market would like us to do. But moving step by step is democracy. First we discuss things and then get back to work to implement what we agreed. Actually it clearly shows that we can be trusted and the market will understand it one day or another.
||Janez Sustersic, Slovenian Minister for Finance