EU finance ministers discuss crisis measures

Tuesday 15 March 2011, 13:31

BRUSSELS (Reuters) - European Union officials and finance ministers met on Tuesday to discuss details of an agreement on strengthening the euro zone bailout fund and resolving a year-long debt crisis.

Following are some comments from their meeting.

GREEK FINANCE MINISTER GEORGE PAPACONSTANTINOU

ON EUROPEAN STABILITY MECHANISM (ESM):

"The issue of seniority is one that is being discussed at the moment to clarify issues, and to make sure that it does not penalise countries such as Greece which are in a programme and want to re-enter the market."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

ON IRISH BAILOUT LOANS AND APPROACH TO TAXATION:

"Changing the corporate tax rate was not part of the programme agreed between the EU, IMF (Berlin: MXG1.BE - news) and the Republic of Ireland (Berlin: IIK.BE - news) ."

"We are both aware that it was a subject of discussion, and one can even say controversy, in the euro zone summit, and there was some relation made between this and the reduction of the interest rate."

"I see that it is very important that the European Union moves further on tax coordination on the basis of the current treaty, and therefore my colleague (EU tax commissioner) Algirdas Semeta is tomorrow presenting a proposal of the Commission on the Common Consolidated Corporate Tax Base (CCCTB), which is a very reasonable and gradual way forward in terms of rationalising the tax systems in the euro zone and more probably in the European Union."

"Therefore I would only encourage a constructive approach by Ireland on policies related to taxation, especially on the Commission proposal on a Common Consolidated Corporate Tax Base -- the CCCTB -- which will be presented tomorrow."

ON PORTUGUESE ECONOMIC REFORMS:

"These measures are intended to ensure fiscal sustainability of Portugal and to stimulate economic growth and job-creation through structural reforms ... It is not going to be easy."

ON THE EUROPEAN STABILITY MECHANISM (ESM):

"Concrete details are still being discussed in the Eurogroup. There is going to be a case-by-case assessment of any country and a programme is required to qualify for this kind of flexibility."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

ON THE EUROPEAN STABILITY MECHANISM (ESM):

"We will pay in a part in capital, a part in callable capital and use guarantees. Particulars still have to be cleared up with the rating agencies so we have AAA."

ON THE EUROPEAN FINANCIAL STABILITY FACILITY (EFSF):

"Nobody doubts anymore that the 440 billion euros (381.8 billion pounds) will be made available and they will be available as long as the EFSF exists. Largely, we will have to increase the guarantees.

"Whether we will also add other elements ... remains to be seen."

"Even a temporary exit of one country would be a failure and would be connected to unpredictable consequences for Germany."

"To say there will be problems in the Bundestag is a premature judgement. I have not heard much criticism, not even from the opposition."

ON CHANGING TERMS OF IRISH EU BAILOUT LOANS:

"Therefore we had to tell the new Irish colleague, with all due respect, maybe you need more time, but if Ireland wants to renegotiate, the problems in the banking sector also emerged due to the corporate tax rate. If the Irish want additional concessions from us, we say maybe you do want to change something about your tax rate."

IRISH FINANCE MINISTER MICHAEL NOONAN

"When you add the requirements of the banks onto sovereign debt, you can reach an unsustainable position."

AUSTRIAN FINANCE MINISTER JOSEF PROELL

ON CHANGING TERMS OF IRISH EU BAILOUT LOANS:

"If Ireland wants anything, it has to deliver something. Greece showed that.

"Ireland must say now what it wants and ... what it can give."

ON FINALISING CHANGES TO THE EUROPEAN FINANCIAL STABILITY

FACILITY (EFSF) AND EUROPEAN STABILITY MECHANISM (ESM):

"I am very, very optimistic we will close a deal with the heads of government."

SPANISH ECONOMY MINISTER ELENA SALGADO

ON SANCTIONS FOR BUDGET SINNERS:

"The application of reverse majorities will be used for all fiscal issues."

"With regard to macroeconomic imbalances, as we have always said in Spain, they have diverse causes, which are not always easy for nations to avoid, so the responsibility of states is not the same as with fiscal imbalances."

ON TARGETS FOR SURPLUSES AND DEFICITS:

"Disequilibriums in both senses are contemplated, including macroeconomic disequilibriums."

"'Penalise' is not the right word, because what we are trying to achieve is the competitiveness of the European Union, but what is certain is that it is contemplated that disequilibriums can have different signs." (Reporting by Charlie Dunmore, Annika Breidthardt, Daniel Flynn, John O'Donnell, courtsey news by Reuters)