Transcript of Vice President Olli Rehn's declaration after the Eurogroup
"Today's discussions in the Eurogroup focussed both on creating stronger financial firewalls and building a stability union. There is no single "silver bullet" that will get us out of the crisis. Instead, we need to work on all fronts. The decisions of the Eurozone Summit of 26-27 October do precisely that and they must be fully implemented. "
Joint press conference by José Manuel Barroso, President of the EC, and Olli Rehn, Vice-President of the EC, on the adoption of new economic governance package - 23 November 2011
"The current situation requires extraordinary and decisive policy action.
To restore growth and safeguard the European integration project action is needed on broad front.
- Annual Growth Survey spells out our view of the policy priorities in the coming 12 months to restore macro-financial stability and rekindle growth
- Two proposals for new regulations will strengthen fiscal surveillance in the euro area.
- The feasibility study on stability bonds examine the potential benefits for financial stability of jointly issues bonds and the precondition for their issuance. "
"Now we must bring the stability culture to fiscal policy. We have made progress: New legislation to strengthen the Stability and Growth Pact proposed a year ago will enter into force shortly. It will allow us to tackle both fiscal and macro-economic imbalances of a Member State much earlier than has been the case. The new tools include the possibility of financial sanctions if a euro area Member State does not follow the EU recommendations to put its fiscal house in order.
And rest assured, I will make full use of all these new instruments from Day One of their entry into force. We cannot afford to tolerate a breach of jointly agreed rules by anyone anymore. We have seen, only too concretely, that it happens at the cost of other Member States."
"Growth has stalled in Europe, and there is a risk of a new recession. While jobs are increasing in some member states, no real improvement is forecast in the unemployment situation in the EU as a whole. The key for the resumption of growth and job creation is restoring confidence in fiscal sustainability and in the financial system and speeding up reforms to enhance Europe's growth potential. There is a broad consensus on the necessary policy action. What we need now is unwavering implementation. On my part, I will start using the new rules of economic governance from Day one."
"Let me be very blunt on this: It's either the EU institutions, according to our own rules, procedures and democratic accountability, or the market forces that will do the job. For me, as a committed European and a committed democrat, the choices are clear."
Ladies and Gentlemen,
Thank you for your kind invitation to address such a distinguished audience. In my intervention, I will focus on the main achievements of the G20 summit in Cannes, where we started the meeting not just in stormy and rainy weather, but also in a rather stormy mood.
In Cannes, much attention was paid and time spent on the euro area. We received strong support and plenty of advice from our global partners. The G20 welcomed the decisions taken by European leaders on 26 October 2011 to restore debt sustainability in Greece, strengthen European banks, build firewalls to avoid contagion and lay down the foundations for robust economic governance in the euro area.