18 January 2012

ALDE Verhofstadt: The solution to the crisis is common bonds

Verhofstadt stressed that the European leaders should read the reports from CRAs because what they are saying is true. CRAs described the lack of political courage and unity in Europe.

Verhofstadt also said:

“They describe the wrong interpretation of the crisis. It's not only a fiscal crisis, but also a trade imbalance crisis. 

"They describe the need to help in countries that are cutting their expenditures, so that they can also make some growth. They are right that the crisis is far from over, and that we still need a sustainable solution. And everyone knows what that is:  stability bonds, common bonds. Choose the name.

"A redemption fund, as the German economists proposed, or a fully-fledged eurobond market, as proposed in the Green Paper of the European Commission. But colleagues, we have to do it now! 

"Have you read the opinion of Mr Monti in the Financial Times today?  What he said, is crystal clear. He can do savings, he can do additional cuts, he can do whatever you want.  But he needs a lowering of his interests rates. Not tomorrow, but now. 6-7 per cent is not sustainable for Italy.

"All the efforts he is doing now are in vain. They are eaten by the rising interest Italy has to pay. If we don't, the outcome is clear, more countries will follow Greece and the euro can disappear.” 

Full intervention

© ALDE