VIENNA (MNI) – Klaus Regling, head of the newly-created European
Financial Stability Facility, said he does not expect it to have to lend
money to troubled Eurozone member states.
“My expectation is the EFSF will not need to lend money,” Regling
said. However, the fund is ready to step in if necessary and its
existence alone calms market, he added.
As important as the EFSF are countries’ persistent reform efforts
to reduce deficits, ensure future growth and regain the trust of the
markets, Regling said during a panel discussion at a conference
organized by the Austrian Finance Ministry.
“The EFSF can only [buy] time. The countries themselves must
improve their fundamentals,” he said.
–Frankfurt newsroom, +49-69-720-142; jtreeck@marketnews.com
[TOPICS: M$X$$$,M$$CR$,MGX$$$]
