BRUSSELS (MNI) – The EU economy risks a creeping decline unless
reform measures are taken, European Commissioner for Economic and
Monetary Affairs, Olli Rehn said Wednesday.
“Without fiscal consolidation, renewed financial turmoil could not
be avoided and the chances of sustainable growth will be slim indeed,”
Rehn told reporters at a press conference in Brussels.
He said that next year the European economy “should have, and will
have, gained stronger momentum.”
“Much more needs to be done in the near future,” Rehn said, adding
that there was a need to create a “genuine economic union, in other
words to fill the E in EMU with real life.”
“We do not have the luxury of time,” Rehn said, warning that there
was a risk of a “creeping decline” in growth if reforms are not taken.
European Commission President Jose Manuel Barroso said the European
Union needs “to regain the confidence of consumers and investors.”
“This can only be done if we show we are serious about putting
order into our public finances…There is simply no room for more
deficit spending,” Barroso said.
“In order to prevent short term fiscal discipline from having a
negative effect on growth, we need to combine it with structural
reforms,” Barroso said. “Growth will come from addressing the root
causes that underpin a lack of competitiveness.”
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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