Brussels, 08/06/2012 (Agence Europe) - Jean-Claude Juncker, the president of the Eurogroup, was in Brussels on Thursday 3 June for a conference organised by the European Economic and Social Committee, to explain various issues connected with the sovereign debt crisis against the backdrop of malaise in Spain (which might request financial aid on Saturday - see separate article).
Possible aid for Spain. Juncker said Spain had not requested aid, but if it were to need financial aid to bail out its banks, then the aid would clearly be forthcoming. In response to a reporter's question about how much aid would be on the cards, Juncker said it was too soon to speculate. He praised the way the Spanish government had taken all the necessary consolidation measures.
Greece. Juncker rejected the idea that the outcome of the elections on June 17 would force Greece out of the eurozone, and hoped that Greek democracy would show that it wants to remain in the single currency.
Growth. Juncker said that people had focused on budget consolidation and people often say that Europe moves very slowly, yet this is the first time in 30 years that so many decisions have been taken in such a concentrated timeframe. He said the most important work had yet to be done and it was time to create greater European integration and boost economic policy coordination. The European summit of 28-29 June should make a qualitative leap forwards, he added, saying that this is a time of genuine tension and crucial weeks for both the EU and the single currency.
Franco-German tension. Juncker said that Europe was more than France and Germany, and while it would be better to avoid disagreements between the two biggest eurozone economies, the other 15 eurozone nations could play their part and examine together a potential growth agenda. The first stage of this, he said, was to agree on the content of growth stimulus measures and then see what legal means might be needed to put them into practice. He said that both growth and budgetary discipline were needed to overcome the debt crisis.
The euro. Juncker said the current situation would be far worse if the euro didn't exist and all the various monetary systems in Europe had had to react to the 11 September attacks or the war in Iraq. The euro provides protection and while not everything is perfect in the eurozone, the current crisis is not actually a crisis of the euro as such, but rather a crisis due to the debt accumulated by a handful of countries. He said the external stability of the euro was remarkable, despite a few slidings, and the time had now come to prove that people are resolute in their determination to do whatever is needed to ensure financial stability in Europe. (EL/transl.fl)