Brussels, 27/04/2010 (Agence Europe) - The European Central Bank (ECB) vice-president, Greek Lucas Papademos, is hopeful that the programme that will allow the joint support plan for Greece to be put into action will soon be in place. Greece, however, must still, address its economy's structural weaknesses. “It is essential that the economic programme currently being prepared by the European Commission, the ECB and the IMF together with the Greek authorities specifies comprehensive fiscal measures and structural reforms that will address the root causes of Greece's fiscal imbalances and structural weaknesses, so as to ensure the sustainability of its pubic finances and improve the country's international competitiveness,” Papademos said on Tuesday 27 April, presenting the ECB's annual report for 2009 to the European Parliament economic and monetary affairs committee. The main thing, he said, was to finalise the programme “in a timely manner” and “I believe there will not be difficulties in reaching a common position”. He later told journalists that he expected things to be in place “by early May”.
Elsewhere, with regard to assessment of the euro area countries' stability programmes, Papademos regretted that, in several instances, “the fiscal strategies presented are not underpinned by adequately specified measures, in particular for the latter years of the projection horizon” (2012 or 2013). “Moreover, in a number of cases, the stability programmes are based on optimistic macroeconomic assumptions that put the correction of the excessive deficits, according to the Council's deadline, at risk,” added the ECB vice-president, who will be replaced in this post by Vítor Manuel Ribeiro Constancio at the end of May. Papademos said that, in future, all the countries of the euro area must “strictly adhere to the Pact's provisions”, as sustainable public finances will ensure long-term economic growth. In the shorter term, uncertainty remains high for both activity and price developments. The pace of economic recovery will be moderate in 2010, but will quicken in 2011, he said, noting that the upswing was likely to be uneven over time and across regions. Consequently, inflation will also be moderate in 2010 and in the medium term.
The ECB annual report is available at: http: //http://www.ecb.int/pub/annual/html/index.en.html (A.B./transl.rt)