FRANKFURT (MNI) – European Commission President Jose Manuel Barroso
is aiming to convince Germany of the need to provide Greece with a
financial safety net ahead of the European Council meeting scheduled for
this Thursday.
However, in an interview published in the Financial Times on
Tuesday, the Commissioner stressed that such a safety net should not be
viewed as a bailout for the debt-plagued Mediterranean country.
“It is not a bailout,” Barroso said. “We have checked this issue
from a legal point of view…But no bailout does not mean no help.”
Going further, Barroso said that macroeconomic imbalances and
competitive differences within the Eurozone needed to be addressed,
adding that countries with large trade surpluses, such as Germany, could
do more to fuel domestic demand and assist other states.
However, he stressed that the aim wasn’t to “weaken competitiveness
in the face of global competition.”
“We need to improve the competitiveness of the weaker economies,”
Barroso said. “But stronger domestic demand in countries with current
account surpluses would help. We need stronger economic policy
coordination.”
–Frankfurt bureau. Tel: +49-69-720-142. Email: frankfurt@marketnews.com
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