Economic Dialogue on financial assistance to Cyprus : - MEPs debate EP Committee on Economic and Monetary Affairs EPRef93768 // European Parliament , Brussels, room JAN 6Q2

Type: News   Reference: 93768   Duration: 00:04:51  Lieu: European Parliament, Brussels
End production: 08/05/2013   First transmission: 08/05/2013
European commission Vice president in charge of of Economic and Monetary Affairs and the Euro Olli Rehn and European Central Bank board member Jörg Asmussen answer questions from the EP Committee on Economic and Monetary Affairs members. The exchange of views continued the debate started on Tuesday. Then, Eurogroup president Jeroen Dijsselbloem explained that measures taken in Cyprus had the role to put the burden on those investors and the uninsured deposits in the two banks where the main risks were concentrated.

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TIME DESCRIPTION DURATION
00:00:00 Title 00:00:05
00:00:05 Exterior view of the European Parliament Brussels 00:00:05
00:00:10 Cutaways , ECON Chairperson , Sharon BOWLES, EC vice president Olli RHEN and Jorg ASMUSSEN, Member of the ECB's board 00:00:05
00:00:15 SOUNDBITE (French) Jean Paul GAUZES (EPP, FR)," Will the Commission have the will and the resources to get the governments to take the necessary measures? 00:00:11
00:00:26 SOUNDBITE (English) by Olli RHEN, European Commission Vice president in charge of Economic and Monetary Affairs and the Euro," My response to your question whether the Commission has the resources and the will to influence the Member states' decisions , as regards the will, yes, as regards the resources? I must give you a more qualified response." 00:00:19
00:00:45 SOUNDBITE (English) by Olli RHEN, European Commission Vice president in charge of Economic and Monetary Affairs and the Euro," Unfortunately the FSF was not so robust in terms of resources or decision structures than it should have been and the Euro area had to rebuild its financial stability mechanism creating the permanent stability mechanism which as such is a progress compared to the original" 00:00:22
00:01:07 SOUNDBITE (Portuguese) Maria FERREIRA (S&D, PT)," How can it be that the process took so long? and then at the moment of truth there was so much disagreement and disorganisation? 00:00:08
00:01:15 SOUNDBITE (Portuguese) Maria FERREIRA (S&D, PT" When are we going to finish with this Troïka, we have already got the two pack , I entirely agree that it's time to move on with this, it is time to move away from an intergovernmental system to a proper European system, when can expect to see the last Troïka?" 00:00:13
00:01:28 SOUNDBITE (English) Jörg ASMUSSEN, Member of the ECB's Executive Board," it was not possible in the meantime to reach a staff level agreement between the Troïka and the Cypriot Authorities that could be then forwarded for a decision to the Eurogroup. 00:00:17
00:01:45 SOUNDBITE (English) Jörg ASMUSSEN, Member of the ECB's Executive Board, "It was simply not able, it was too long that is undisputed." 00:00:06
00:01:51 SOUNDBITE (English) Jörg ASMUSSEN, Member of the ECB's Executive Board, "I would not change the Troika system in the midst of the crisis because we have no alternative available right now but in the longer term future I would agree with you that we should return to a fully EU based system that leads to accountability ft the European Parliament and puts the EU commission at the centre of this activity." 00:00:23
00:02:14 SOUNDBITE (English) by Olli RHEN, European Commission Vice president charge of Economic and Monetary Affairs and the Euro," If the IMF can take decisions with 85% majority and not pure unanimity why on earth the Eurozone can not do so, that would make our decision making more effective if it was based on qualified majority and if the Commission would have the normal role as in the community method." 00:00:22
00:02:36 SOUNBITE( English) by Theodoros SKYLAKAKIS (EPP, GR) "How can you permit 50% of a country GDP to be used as private money by an insolvent bank for almost a year without doing anything?" 00:00:09
00:02:45 SOUNDBITE (English) Jörg ASMUSSEN, Member of the ECB's Executive Board, "You can receive ELA (Emergency Liquidity Assistance) by your national central bank only when you are solvent or when there is a clear perspective that the bank can become solvent again." 00:00:15
00:03:00 SOUNDBITE ( English) by Lajos BOKROS, (ECR, HU), "Slovenia which is the next to fall in a banking crisis, it is clear 22 years that the Slovenian state never undertook a serious effort of recapitalization , no privatisation happened , internal governance is absolutely weak, there is n o risk management in those banks,..." 00:00:25
00:03:25 SOUNDBITE (English) by Lajos BOKROS, (ECR, HU),"...And you as Commissioner for enlargement admitted them to the Eurozone! And admitted them to this club which is now contaminating the rest of the whole club" 00:00:13
00:03:38 SOUNDBITE (English) by Olli RHEN, European Commission Vice president in charge of Economic and Monetary Affairs and the Euro, "We made it very clear that there are excessive imbalances and we are expecting in these day a revised and a convincing stability and reform programs from Slovenia." 00:00:15
00:03:53 SOUNDBITE (English) by Philippe LAMBERTS (Greens/EFA, BE),"The Cypriot economy will shrink way more than 12.5% in the next two years..." 00:00:06
00:03:59 SOUNDBITE (English) by Philippe LAMBERTS (Greens/EFA, BE),"Does this ort of state of denial , does not make the crisis resolution ultimately more expensive , not just to the people in the country but to all the creditors countries in Europe" 00:00:14
00:04:13 SOUNDBITE (English) Jörg ASMUSSEN, Member of the ECB's Executive Board, "We would expect that the economic activity will contract significantly , cumulated in this year and next year , it is expected at minus 13% while domestic demand in the same period id foreseen to decrease by 20%"l 00:00:22
00:04:35 cutaways (4 shots) 00:00:16
00:04:51 END 00:00:00
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