COPENHAGEN (MNI) – The increase in the European financial firewall
announced Friday should clear the way for a boost in resources for the
International Monetary Fund, Olli Rehn, the EU economic and monetary
affairs commissioner, said.
“We are satisfied with this decision,” Rehn said at a press
conference following the meeting of finance ministers and central
bankers here. “I trust this decision will pave the way for an increase
in IMF resources at the IMF spring meetings,” he said.
His remarks echoed those of ECB Executive Board member Joerg
Asmussen, who spoke at the same press conference.
Finance ministers on Friday approved a temporary increase in the
lending ceiling of the combined European bailout funds to E800 billion
from E500 billion. The actual amount of funds available for new lending
were essentially capped, however, at E500 billion.
“We see this as a lasting decision,” Rehn added. “We are finally
complementing the monetary union with a truly integrated economic
union,” he said.
On other topics, Rehn said he welcomed the Spanish government’s
reaffirmation in the 2012 budget presented on Friday that it will reduce
its deficit to 5.3% of GDP this year. He said it was of “paramount
importance” that the target of 3% of GDP be reached by 2013.
–Paris newsroom; +33142715540; jduffy@marketnews.com
[TOPICS: M$$CR$,M$X$$$,MGX$$$,M$S$$$]
