HIGHLIGHTS-Comments after EU leaders' summit
BRUSSELS | Wed May 23, 2012May 24 (Reuters) - European leaders discussed ways to revive their economies on Wednesday night, with growth and jobs on the agenda along with the situation in Greece.
Following are comments by EU leaders and officials after the talks ended early on Thursday:
EU LEADERS' STATEMENT ON GREECE:
"We discussed the political and economic situation in Greece. We want Greece to remain in the euro
area while respecting its commitments.
"We are fully aware of the significant efforts already made by the Greek citizens.
"The euro zone has shown considerable solidarity, having already disbursed together with the IMF nearly 150 billion euros in support of Greece since 2010. We will ensure that European structural funds and instruments are mobilised to bring Greece on a path towards growth and job creation.
"Continuing the vital reforms to restore debt sustainability, foster private investment and reinforce its institutions is the best guarantee for a more prosperous future in the euro area.
"We expect that after the elections, the new Greek Government will make that choice."
GERMAN CHANCELLOR ANGELA MERKEL
ON JOINT EURO BONDS:
"Various participants (at the meeting) made clear that the uniform interest rates with the introduction of the euro did not result in an improvement in the competitiveness of all countries."
"There were differences in the exchange about euro bonds."
ON GREECE:
"We want Greece to stay in the euro, but we insist that Greece sticks to commitments that it has agreed to."
EUROPEAN CENTRAL BANK PRESIDENT MARIO DRAGHI
ON JOINT EURO BONDS:
"Euro bonds make sense when you have a fiscal union, otherwise they don't make sense. They are the first step towards a fiscal union."
EUROPEAN COUNCIL PRESIDENT HERMAN VAN ROMPUY
ON JOINT EURO BONDS:
"It was briefly touched upon by several members of the European Council in different directions, but let me put it also very clearly, it was mentioned in the framework of deepening monetary and economic union. Nobody was asking for an immediate introduction. This would take time. It is the end of a process to consider what the legal implications of all this are, so we discussed it in this specific chapter of the longer term project of deepening the monetary and economic union."
"Euro bonds were discussed in the specific chapter of the long-term project of deepening the monetary and economic union."
ON BANK SUPERVISION AND RESOLUTION:
"These ideas on stronger, stricter banking supervision and resolution were only mentioned, we did not have a real discussion on it, but we will work on them in the upcoming weeks."
ON GREECE IN EURO ZONE:
"We want Greece to remain in the euro area, while respecting its commitments. We are fully aware of the significant efforts already made by the Greek citizens and the euro zone has shown considerable solidarity having already disbursed, together with the IMF, 150 billion euros in support to Greece since 2010."
ON CONTINUED REFORMS IN GREECE:
"We expect that after the re-elections, the new Greek government will make that choice."
ON DEEPENING ECONOMIC UNION:
"We will report in June on the main building blocks and on a working method in order to achieve this objective."
ON INCREASING CAPITAL FOR EUROPEAN INVESTMENT BANK:
"The board of the European Investment Bank is invited to consider an increase of its capital for financing projects across the union."
SPANISH PRIME MINISTER MARIANO RAJOY
SPAIN'S POSITION AT THE SUMMIT:
"I defended the need for control in public spending, that's to say that the public sector does not spend what it doesn't have, and I reaffirmed Spain's commitment to control the public deficit. I defended the need for reforms to have a more flexible and competitive economy."
"The most important thing at this time is to guarantee the sustainability of public debt in the countries of the European Union. I think that the European Union needs to take rapid reforms to control public deficits."
ON GREECE AND THE FUTURE OF THE EURO:
"I am very worried by the situation in Greece, I very much hope that Greece can stay in the euro, I think that would be very good for Greek citizens, even if they have to make an effort, but it is also good for the European Union as a whole.
"I think it is good that there is a very clear message that the euro is irreversible and a project we won't give up on. It's important that we prepare the future of the euro and what we want... for instance euro bonds that we discussed today.
"I made my priorities clear, which are the control of deficits, national reforms, European reforms, the sustainability of public debt and to start thinking about the future of the euro and the designs around it."
FRENCH PRESIDENT FRANCOIS HOLLANDE
ON ENCOURAGING GROWTH:
"We had an exchange of views.
"The idea is to put energy into the growth motor
"All the member countries don't necessarily share my ideas. But a certain number expressed themselves in the same direction."
"Today, what counts is giving a new dimension to growth."
"There were some proposals where there is already a consensus, namely project bonds, recapitalising the EIB, on mobilising EU structural funds, reorientating the budget, but I proposed that we go further. Notably on the idea that the European project should be more targeted to new technologies, in renewable energy and industrial projects."
ON SITUATION IN GREECE:
"What would happen if a new government formed after the Greek election refuses the memorandum and does not respect the goals? I think the euro zone's attitude would be to ask it to strictly respect its commitments."
"On Greece, a text was adopted on having Greece stay in the euro zone, provided that it respect its commitments."
"I am not aware of any simulation of a Greek exit from the euro and France is not working under that hypothesis."
"EU structural funds should be used to help restore Greek growth."
ON USING JOINT EURO BONDS:
"I was not alone in defending euro bonds."
"For now, Germany's line of thinking is that euro bonds, if I give the most optimistic version, could only be an end point, whereas for us they are a starting point. It's true that there is there a difference.
"I respect Mrs Merkel's point of view when she says euro bonds are not an instrument of growth in themselves. So the discussions will continue. There was not a conflict or a confrontation. Everybody gave their opinion and there were others that were much more strongly against (euro bonds) than Mrs Merkel."
Following are earlier comments ahead of the talks:
DUTCH PRIME MINISTER MARK RUTTE
ON JOINT EURO BONDS:
"Euro bonds (are) not something we are in favour of, they would increase our borrowing costs."
ON GROWTH AND AUSTERITY:
"We are talking about growth and we've put ideas forward, but you can't slacken your budgetary efforts because people will lose trust."
SWEDISH PRIME MINISTER FREDRIK REINFELDT
ON EURO ZONE ECONOMY:
"The euro zone is moving in the right direction. You can actually see the former huge deficits now shrinking, even though it needs to go further."
ON EURO ZONE BONDS:
"I am very sceptical about euro bonds, because I think it is wrong, (at) both ends. It creates an atmosphere where the good behaviour (is) punished and the ones that should do more will get some relief."
FINNISH PRIME MINISTER JYRKI KATAINEN
ON EURO ZONE BONDS:
"I don't support euro bonds.
"Too many countries have got too many loans for too low a price for too long.
"Euro bonds would institutionalise this problem and that's why we are not interested.
"Everybody understands euro bonds (would) take a long time to launch."
ON GROWTH AND AUSTERITY:
"Growth has been on the agenda for years.
"I think that we should talk about growsterity, which means austerity measures to really change confidence and at the same time to have measures to strengthen growth.
"For instance, lowering some taxes and doing some structural reforms, especially in the labour market."
BELGIAN PRIME MINISTER ELIO DI RUPO
ON A STRATEGY OF GROWTH:
"Ever since I came to the European summit in December, I have been asking for a strategy of growth and stimulus. Today a number of countries support this idea, in particular France and in particular President (Francois) Hollande."
"We can do something for businesses. The financial transactions tax, euro zone bonds, euro-projects - we have to give hope back to people. I would say that in the conditions today, it would be appropriate to have a strategy of growth and stimulus.
"We can't consider any more that the European Union stays just in the dimension of austerity. In Belgium, we want to be rigorous with the budget, but we also need a stimulus programme."
GERMAN CHANCELLOR ANGELA MERKEL
ON STEPS TO ACHIEVE GROWTH:
"(Today) it's about having an exchange about how we prepare for the summit at the end of June and complete what we have discussed at previous summits, namely to work out growth perspectives for the European Union and the euro zone.
"For us, it's about deepening the internal market. I will propose that the mobility of labour market be improved. In some countries workers are sought, in other countries there is high unemployment, particularly for young people.
"Secondly, it's about structural reform. It's about closer cooperation in the euro zone regarding the social welfare system, labour market rules.
"Thirdly it's about strengthening the role of the European Investment Bank."
"Nothing will be decided today. It's an exchange of opinions and then a final agenda at the end of June."
ON JOINT EURO ZONE BONDS:
"I do not think they would be a contribution to promoting growth in the euro zone as the very similar interest rates that we had for many years led to serious, misjudged developments."
BRITISH PRIME MINISTER DAVID CAMERON
ON SITUATION IN GREECE AND WIDER EURO ZONE:
"Of course this is an important meeting for Britain because what happens in the euro zone affects our country and of course we need a decisive plan for Greece and a decisive plan to get the European economies moving.
"But if we are not going to keep coming back and back to meetings like this, we also need to deal with some of the longer term issues at the heart of a successful single currency, having a bank that gets behind that single currency, having coherent long term plans to make sure that single currency is coherent.
"We have to address those issues too or these crises will keep occurring."
FRENCH PRESIDENT FRANCOIS HOLLANDE
ON ENCOURAGING GROWTH:
"We have growth propositions on the table. There are many."
"No proposition should be ruled out in principle."
"We are putting on the table for this council what we think could improve the level of growth.
"Today the growth forecasts for 2012 are extremely negative...
"For 2013 the forecasts are pessimistic so we have an obligation to lift very quickly the growth rate.
"We haven't come together to confront each other... but we have to say what we think - what are the right instruments, the right methods, the right steps, the right initiatives to raise growth?
"At the end of June we will take decisions, but for the moment, I think it's decisive that we say what we are thinking."
ON SITUATION IN GREECE:
"Greece must make an important decision on June 17 and this choice could be European.
"France wants the Greeks to remain in the euro zone and the Greeks must respect the engagements which have been made, but at the same time the euro zone must show that it is willing to support Greece."
IRISH PRIME MINISTER ENDA KENNY
ON JOINT EURO ZONE BONDS:
"Euro bonds are one of a range of opportunities for discussion here. Clearly, euro bonds is an issue that will be on the table. I think it is fair that we should explore what that actually means."
ON USING THE EURO ZONE'S ESM BAILOUT FUND TO HELP BANKS:
"Obviously this would be of interest in Ireland. Clearly an issue like that would be in Ireland's interest and one we would be exceptionally interested in."
ON SITUATION IN GREECE:
"Clearly this is a matter of quite considerable concern in the European Union and the euro zone. There is a very strong willingness within the Greek population to stay in the euro."
ON A FISCAL UNION:
"This is an issue where Europe is now squaring up to the realisation that good budgetary rules and fiscal discipline are important, but they are only part of the full picture and you need a strong growth agenda."
BELGIAN FINANCE MINISTER STEVEN VANACKERE
ON POSSIBILITY OF GREECE LEAVING EURO ZONE:
"All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid.
"We must insist on efforts to avoid an exit scenario but that doesn't mean we are not preparing for eventualities. I believe many countries have their contingency plans for the things they want to avoid at all cost, like terrorist attacks, and to say that we don't have a contingency plan would be irresponsible."
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