TALLINN, Estonia (MNI) – EU Monetary Affairs Commissioner Olli Rehn
said Monday that EU member states might want to create a permanent
crisis solution, but it is too early, at present, to discuss prolonging
the euro rescue fund, or European Financial Stability Facility, beyond
2013.
“It is better to think about it next year,” Rehn said at a press
conference at the Euro Changeover Conference. The commissioner said he
hoped that no state will ever have to make use of the aid facility, “but
it is important to have a vehicle of last resort.”
In his speech at the conference, Rehn noted that the economic
recovery in the EU has gained momentum and employment is starting to
improve. “Thus, we now have solid ground under our feet,” he said,
though he warned that “there is no room for complacency.”
Growth prospects in the EU remain uncertain and financial markets
are still fragile, he cautioned. “It should be clear to all of us that
we are not out of the woods yet,” he said.
Today the EFSF received top ratings from all three major rating
agencies. EFSF head Klaus Regling said he was “most satisfied” by this
outcome.
The E440 billion EFSF was created earlier this year by EU leaders
as a backstop facility for Eurozone countries that run into financial
difficulties. Together with a pledged IMF facility, the total available
for such purposes would be as much as E750 billion.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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