–Need To Ensure Debt Reduction Doesn’t Hamper Recovery
BRUSSELS (MNI) – Financial markets aren’t differentiating among the
different Eurozone economies and the E110 billion support package for
Greece only had a short-term impact on the markets, Spanish Finance
Minister Elena Salgado said on Tuesday.
“The coordinated action… to deliver a support package for Greece
has had a relatively short … impact on the markets,” the minister told
a conference here.
Markets have remained jumpy and euro under pressure long since the
Eurozone announced a E110 billion support package for heavily indebted
Greece and said a further E750 billion would be made available if any
other country fell in to difficulty.
Salgado said creating sustainable growth and consolidating public
finances were the ways to rebuild market trust. “Confidence in markets
… is essential to strengthen the recovery,” she said, “in particular
to foster strong sustainable … growth.”
“Sustainable growth needs a credible fiscal consolidation
strategy,” she said. But it is also important to ensure that fiscal
consolidation doesn’t “hamper the nascent recovery,” she cautioned.
Finance ministers are “examining how to strengthen the Stability
and Growth Pact,” Salgado said, to “prevent new imbalances from
arising.” They are also “studying how to create permanent crisis
mechanism to mitigate market turbulence and prevent contagion episodes,”
she said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
[TOPICS: M$X$$$,M$$CR$,MGX$$$]
