BRUSSELS (MNI) – European countries need to cut their debt burdens
more quickly, European Commissioner for Economic and Monetary Affairs
Olli Rehn said on Wednesday.
Market fears about heavy debt burdens in many Eurozone countries
have pressured the euro in recent weeks. Increasing pressure on Greek
bond spreads prompted a E110 billion aid deal for the southern European
country and the setting up of a E750 billion fund in case others fall in
to similar difficulties.
“The debt burdens that have been and are being cumulated call for a
stronger approach on fiscal consolidation than pursued so far,” Rehn
told delegates at a conference here.
“This concerns basically all EU member states. However, there is
also a clear need for differentiation,” he said.
“The most indebted countries and who have turned out to be most
vulnerable to market reactions need to take speediest and strongest
measures,” Rehn said.
“The countries that have more fiscal room of manoeuvre can take a
more gradual approach to consolidation,” he said.
–Brussels: 0032 487 (0) 32 803 665, echarlton@marketnews.com
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