01 August 2011

Herman van Rompuy: A summer of discontent?

In this Opinion Piece, European Council President, Herman van Rompuy, writes that to reduce debt, waste must be addressed and growth unshackled. Greece has a unique problem in the EU, but it is solvable.

In his article, Mr van Rompuy said: "If the laws adopted recently by the Greek parliament are implemented, and if our technical and investment assistance yields the expected results I think there is more than a fair chance for Greece to come through".

He went on to say that since the summit, due to the complexities involved, the requirements of parliaments in certain Member States, and even positions taken in the markets, a number of misunderstandings have arisen. In order to address these, the article covers the following points:

• the concerns related to the sustainability of Greece's debt;
• putting an end to speculation about the debt elsewhere in the euro area;
• the allowed EFSF and ESM intervention in the secondary markets in exceptional situations to be assessed by the ECB.

Mr van Rompuy concluded by saying: "Finally, it is imperative to bear in mind that this is not a crisis about the euro. In the aftermath of the financial crisis of 2008, all developed countries are faced with increased public debt. Given the interdependence of these economies, as we have clearly seen first hand in the European Union, it is in everyone's interest that each country should find a solution to this burden, tailored to their own needs, which will have a direct effect on jobs and growth in the coming years. In light of this we are confident that the US will find a solution to their current stalemate for their own sake and for that of the stability of the financial market-at-large".

"Economic growth has picked up in Europe and is on average 2.5 per cent in western European states. Those countries currently in loan programmes will see a return to growth in 2012. As soon as consumers and businesses see that debt levels and deficits are going down, this will have an extra positive effect of boosting consumer confidence and corporate investments. A win-win situation."

Press release

© European Council