VIENNA (MNI) – European Central Bank Governing Council member Ewald
Nowotny said he “welcomed the overall outcome of the European Summit,”
because “steps have been taken in the right direction both for long-term
stability as well as short-term measures.”

He pointed in particular to an agreement to bolster Europe’s
bailout fund, the European Financial Stability Facility and to bring
forward by one year, to June 2012, the launch of its successor, the
European Stability Mechanism.

Though Friday’s decisions “point in the right direction,” Nowotny
conceded that “certainly some will need a more detailed discussion.”

Regarding criticism of the summit’s outcome expressed by some,
Nowotny said that it “has become a game to push up expectations too high
before a summit only to be able to express disappointment at its outcome
afterwards.”

“Taking into account the legal and financial framework in Europe
the summit brought good results”, Nowotny reiterated. He added that the
main challenge now was to implement the measures that had been decided
on.

He noted that one “mistake” made in setting up the ESM had been
rectified: “The mistake in setting up the ESM was to require unanimity
and that was now changed to an 85% majority.”

Nowotny also pointed out that at yesterday’s monthly ECB meeting in
Frankfurt, the central bank had taken steps for “technical assistance
for the EFSF in its operational tasks, which means it will be able to
become active more quickly.”

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