Aug 12

Fund Commissioner

Rehn stressed that the fact that both Italy and Spain have committed to undertake and implement ambitious measures to achieve fiscal consolidation and the full recovery of their economies is what should prevail in the view of the markets. It is what matters and what must be taken into account, he concluded. They ruled out a rescue for Spain and Italy do not believe that none of these two countries are going to need a special program of rescue, the foundations of its economy does not justify to be necessary, the Commissioner said, the measures already taken by their parliaments would not be needed such extraordinary measures. On the other hand, the European Commissioner has assured that the agreement on the second bailout to Greece and to ensure the stability of the eurozone will be completed in weeks, in early September. We are doing what is necessary to implement the agreement as rapidly and fully as possible, said Rehn, and he said that the European Commission’s services are working day and night to finish the technical details of the agreement and that they are moving rapidly.

The Commissioner relied on investors to tranquilizaran on the implementation of the agreement once they understand that all this work is carried out, and recalled that the President of the EC, Jose Manuel Durao Barroso, yesterday urged the EU leaders to a rapid implementation of what was agreed. Rehn also stressed that the EU must be ready to adapt its crisis management tools so that they are credible and acti, in allusion to the possibility of expanding the rescue (EFSF) Fund. To make this instrument asset’scarryingamount, it must be credible and respected by the markets, so the EFSF will need to be continuously evaluated and updated, said the Commissioner. According to Rehn, this is in line with the conclusions agreed at the end of July by leaders Europeans, who demanded better crisis management methods in the single currency area. As yesterday underlined Barroso in his letter to the js from Government, the Commission remains ready to contribute to this task of paramount importance, added Rehn. In such a missive, the EC President said that the debt crisis already not only affects the peripheral countries and noted the need to expand the bailout Fund (EFSF), something that has attracted criticism from the German Government to reopen this debate at the wrong time. Source of the news: EC says is crucial to Spain apply “offensively” reforms