Brussels, 28/01/2010 (Agence Europe) - The president of the S&D Group at the European Parliament, Martin Schulz, again launched the idea of the EU launching joint European bonds and called on the European Commission to rapidly develop proposals in this sense. Issuing European bonds in eurozone member states would, according to the latter, help Greece tackle its difficulties (by reducing the rates that Athens has to pay to finance its debt). The European Commission is not expected to rule out the possibility of launching such an initiative, although this subject ruffles a few feathers in certain member states, it explained in a statement. Nonetheless, it believes it unacceptable that the European Union does not demonstrate more solidarity with Greece. It stated that the time has come to support the country and not abandon it to the mercy of the international markets.
The question of how they should proceed still needs to be tackled. If the EU can help member states that do not belong to the eurozone (by way of a balance of payments support mechanism), this does not apply to countries sharing the single currency (a “no bailout” clause is contained in the treaties - Article 125 - and the ECB can lend money to a state - Article 123). According to the French newspaper Le Monde on 29 January, different European governments, including France and Germany, will nonetheless, examine, in consultation with other European bodies, financial support mechanism modalities through bilateral loans from member states or structural fund early payments (France and Germany are said to have denied this). The spokesperson for Commissioner Almunia refused to make any comment about these rumours or speculation and insisted, above all, that it was the responsibility of the Greek government to carry out budgetary reduction and reform.
EU countries are more inclined to intervene themselves at resolving this question rather than calling on the IMF to the rescue. They may also display some solidarity by resorting to Article 122.2 of the treaty stating that “when a member state is experiencing difficulties… due to natural disasters or exceptional events outside its control, the Council voting at unanimity on a Commission proposal, can grant, in certain conditions, Community financial assistance to the member state concerned”. (A.B./transl.fl)