PARIS (MNI) – French President Nicolas Sarkozy and German
Chancellor Angela Merkel issued Sunday a joint statement calling for
rapid ratification of second Greek bailout plan and the reforms to the
European Financial Stability Facility (EFSF) agreed in July and for
faster budget consolidation in Italy and Spain.
Following is the text of the statement posted on the website of the
German government:
“President Sarkozy and Chancellor Merkel reiterate their commitment
to fully implement the decisions taken by the heads of state and
government of the euro area and the EU institutions on July 21st 2011.
In particular, they stress the importance that parliamentary
approval will be obtained swiftly by the end of September in their two
countries.
They welcome the recent measures announced by Italy and Spain with
regard to faster fiscal consolidation and improved competitiveness.
Especially the Italian authorities’ goal to achieve a balanced budget a
year earlier than previously envisaged is of fundamental importance.
They stress that complete and speedy implementation of the announced
measures is key to restore market confidence.
As decided on July 21st, the effectiveness of the EFSF will be
improved and its flexibility increased linked to appropriate
conditionality, in particular through the following instruments:
precautionary programme, finance recapitalization of financial
institutions and to intervene in secondary markets on the basis of an
ECB analysis recognizing the existence of exceptional financial market
circumstances and risks to financial stability and on the basis of a
decision by mutual agreement of the member states, in order to avoid
contagion.
In line with 21st July decisions, France and Germany are confident
that the ECB analysis will provide the appropriate basis for secondary
market interventions as it will help determine the case when financial
stability of the Eurozone as a whole is at risk.”
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