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BERLIN (MNI) – Greek Prime Minister George Papandreou on Thursday
called for greater flexibility in the European Financial Stability
Facility (EFSF),
Speaking at a panel discussion at the World Economic Forum Annual
Meeting in Davos, Papandreou said the European Union needed “the
necessary tools and rules and arsenal…so that we can calm the
markets.”
“First the bond markets where there’s the issue of debt,” the prime
minister reasoned. “And this is where the EFSF, this new mechanism,
should be able to be robust and flexible enough to intervene and help in
this way.”
Papandreou stressed that Greece was on track with its austerity
program.
“We have to do our homework and we’re doing that,” he said. “We are
on a path that we think we can get growth in 2012 and restore
confidence. We are hoping to return to the markets even this year.”
“We have been doing everything by the book. The question is why
haven’t the markets responded,” the prime minister asked.
Papandreou once more stressed that “we are not moving to
restructuring” sovereign debt. He acknowledged, though, that “there will
be lengthening of the debt we have to the IMF and EU, discussions about
the terms of the loan [are] also in the pipeline.”
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
[TOPICS: MT$$$$,M$X$$$,MGX$$$,MFX$$$,M$$CR$]
