News
BackAt the beginning of this week, the President of the European Central Bank (ECB), Jean-Claude Trichet and the Eurogroup Chairman, Jean-Claude Juncker attended the economic committee of the European Parliament. Apart from talking about the further procedure with regard to the situation in Greece, the debate also dealt with the general budget policy of the Member States. Trichet and Juncker are adamant that the economic support measures by the governments have to be reduced as quickly as possible and that spending has to be consolidated. This is not good news for the workforce.
Further information:
Press release of the European Parliament
Business as usual
ECB President Trichet sees an improvement of the economic situation throughout Europe. Inflation rates would continue to be low and the granting of credits to private households would be satisfactory. Only corporate financing would still leave something to be desired. These apparently positive signals were reason enough to go back to “Business as usual”. As a result, Juncker and Trichet demand to start reducing and phasing out economic support measures and labour market packages immediately. This was necessary to consolidate the highly indebted national budgets. It was particular important - said the head of the Central Bank - to reduce spending. In view of the cuts in social services over the past 15 years under the heading “reducing the expenditure side of the budget “ this recommendation sounds like a dangerous threat to the workforce.
Help for Greece - but how?
The contributions of the MEPs concentrated on possible financial aid for Greece. Jean-Claude Juncker praises the indebted country because of its budget discipline. If Athens would ask for help, it should get it. A probability would be the implantation of a system based on bilateral supports, which - according to Trichet - had to be in form of loans. By no means must they have subvention character. Juncker does not regard the involvement of the International Monetary Fund (IMF) as desirable, however, the head of Eurogroup is not able to completely exclude this possibility. Both speakers reject the idea of creating the option to exclude individual countries from the Eurozone.
ECB President Trichet sees an improvement of the economic situation throughout Europe. Inflation rates would continue to be low and the granting of credits to private households would be satisfactory. Only corporate financing would still leave something to be desired. These apparently positive signals were reason enough to go back to “Business as usual”. As a result, Juncker and Trichet demand to start reducing and phasing out economic support measures and labour market packages immediately. This was necessary to consolidate the highly indebted national budgets. It was particular important - said the head of the Central Bank - to reduce spending. In view of the cuts in social services over the past 15 years under the heading “reducing the expenditure side of the budget “ this recommendation sounds like a dangerous threat to the workforce.
Help for Greece - but how?
The contributions of the MEPs concentrated on possible financial aid for Greece. Jean-Claude Juncker praises the indebted country because of its budget discipline. If Athens would ask for help, it should get it. A probability would be the implantation of a system based on bilateral supports, which - according to Trichet - had to be in form of loans. By no means must they have subvention character. Juncker does not regard the involvement of the International Monetary Fund (IMF) as desirable, however, the head of Eurogroup is not able to completely exclude this possibility. Both speakers reject the idea of creating the option to exclude individual countries from the Eurozone.
Further information:
Press release of the European Parliament