–Trichet Calls For More Specific Irish Measures
BRUSSELS (MNI) – The European Union and International Monetary Fund
are not planning a mission to Dublin, European Commissioner for Economic
and Monetary Affairs Olli Rehn said on Thursday.
Rehn was speaking after a meeting of EU finance ministers and
central bankers here, where Ireland and Portugal were hot topics after
Ireland revealed that the total cost of bailing out Anglo Irish Bank
could be as much as E34.3 billion and Portugal unveiled a fresh set of
austerity measures.
The costs of the banking bailout will push Ireland’s budget deficit
to 32% of its GDP this year. The government has committed to getting the
deficit below the EU’s 3% limit by 2014. Stripping out the banks, the
deficit is around 11% this year, the largest in the Eurozone.
“As far as we’re concerned it is extremely important – as I have
stated repeatedly – to look at what the Irish government does,” European
Central Bank President Jean-Claude Trichet told reporters after the
meeting. “So I can confirm that new decisions are required.”
“We’re waiting to see what the fiscal adjustment strategy is and
also specific annual objectives for the whole period, year-on-year, up
to 2014,” Trichet said.
“We will encourage certainly the Irish government to be as active
as possible in the working out of this multi-annual programme,” he said,
adding that the measures should be “as convincing as possible.”
“We think we should remain in close touch with the Irish government
to discuss this plan” as well as the European Commission, Trichet said.
Belgian Finance Minister Didier Reynders told reporters that the
IMF was keeping a “close eye” on Ireland, as were all authorities.
Asked about currency fluctuations, Trichet said: “We are living in
a world where of course there are currencies that are floating and when
we have something to say, we say it.”
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: MT$$$$,M$$FX$,M$$EC$,M$X$$$,M$$CR$,MGX$$$]
