EU Agrees To Support Greece, But Won't Provide Details
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Leaders in the European Union are addressing the Greek debt problem today, but while it is clear members agree that the problem needs to be dealt with quickly they stopped short of offering details on how it will be dealt with.
European Council President Herman Van Rompuy said Euro-zone countries will support Greece, but financial support was "not necessary today." Mr. Van Rompuy called on the Greek government to implement measures to cut spending.
The problems of massive deficits in Greece have already spilled over to Spain and Portugal and European leaders fear that unless debt matters get under control the contagion could spread.
Greek Prime Minister George Papandreou, French President Nicolas Sarkozy, German Chancellor Angela Merkel and European Central Bank President Jean-Claude Trichet, met earlier today to discuss the Greek debt issues. The supporting countries called for closer monitoring of the Greek economy, but did not provide details of any direct plan of support.
A statement by the Heads of State or Government of the European Union reads:
"All euro area members must conduct sound national policies in line with the agreed rules. They have a shared responsibility for the economic and financial stability in the area.
In this context, we fully support the efforts of the Greek government and their commitment to do whatever is necessary, including adopting additional measures to ensure that the ambitious targets set in the stability programme for 2010 and the following years are met. We call on the Greek government to implement all these measures in a rigorous and determined manner to effectively
reduce the budgetary deficit by 4% in 2010.
We invite the Ecofin Council to adopt at its meeting of the 16th of February the recommendations to Greece based on the Commission's proposal and the additional measures Greece has announced.
The Commission will closely monitor the implementation of the recommendations in liaison with the ECB and will propose needed additional measures, drawing on the expertise of the IMF. A first assessment will be done in March.
Euro area Member states will take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole. The Greek government has not requested any
financial support."
European Council President Herman Van Rompuy said Euro-zone countries will support Greece, but financial support was "not necessary today." Mr. Van Rompuy called on the Greek government to implement measures to cut spending.
The problems of massive deficits in Greece have already spilled over to Spain and Portugal and European leaders fear that unless debt matters get under control the contagion could spread.
Greek Prime Minister George Papandreou, French President Nicolas Sarkozy, German Chancellor Angela Merkel and European Central Bank President Jean-Claude Trichet, met earlier today to discuss the Greek debt issues. The supporting countries called for closer monitoring of the Greek economy, but did not provide details of any direct plan of support.
A statement by the Heads of State or Government of the European Union reads:
"All euro area members must conduct sound national policies in line with the agreed rules. They have a shared responsibility for the economic and financial stability in the area.
In this context, we fully support the efforts of the Greek government and their commitment to do whatever is necessary, including adopting additional measures to ensure that the ambitious targets set in the stability programme for 2010 and the following years are met. We call on the Greek government to implement all these measures in a rigorous and determined manner to effectively
reduce the budgetary deficit by 4% in 2010.
We invite the Ecofin Council to adopt at its meeting of the 16th of February the recommendations to Greece based on the Commission's proposal and the additional measures Greece has announced.
The Commission will closely monitor the implementation of the recommendations in liaison with the ECB and will propose needed additional measures, drawing on the expertise of the IMF. A first assessment will be done in March.
Euro area Member states will take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole. The Greek government has not requested any
financial support."
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