Saturday 19 August 2017

Big euro countries like Spain will not need bailout

European Commissioner for Economic and Monetary Affairs Olli Rehn. Photo: Getty Images
European Commissioner for Economic and Monetary Affairs Olli Rehn. Photo: Getty Images

Independent.ie reporters

Big European countries like Spain, Italy and France will not need to tap into the rescue fund, EU monetary affairs Commissioners Olli Rehn said in an interview.

"We don't expect that these countries will need help from the stability mechanism," he said despite the ongoing fears of a eurozone debt crisis.



"They are taking the right measures themselves to get their budgets and economies in order.



That is the way to restore and strengthen market confidence." Mr Rehn also told Bild magazine adding that he expects eurozone countries to soon widen the scope of the European Financial Stability Fund (EFSF) bailout fund.



It is currently worth €440bn but some economists believe it needs to be increased to over €1 trillion.



This was agreed by EU leaders at a July 21 summit but has yet to be implemented by individual eurozone countries.



German Chancellor Angela Merkel and French Prime Minister Nicolas Sarkozy meet tomorrow to discuss eurozone issues.



At the weekend, the president of the German parliament, Norbert Lammert, dampened hopes of a discussion on the EFSF in Germany in late September.



Meanwhile, Germany has reiterated its opposition to the idea of a Eurobond as a means to ending the debt crisis.



Finance Minister Wolfgang Schaeuble said issuing jointly guaranteed European sovereign bonds as a means to end the crippling debt crisis as long as the currency zone's 17 nations still run their own fiscal policies.

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