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OECD Secretary-General Angel Gurría has welcomed the measures announced by Eurogroup finance ministers meeting in Copenhagen to protect the euro area economies.
“The OECD has long advocated the creation of a large enough firewall to deal credibly with the euro area’s sovereign and banking crises”, Mr Gurría said. "The measures announced by the Eurogroup have to be seen in a broader context where the International Monetary Fund substantially boosts its resources for the benefit of all its Members, but where, if required, a share would be made available to European countries. The firewall’s impact is also being underpinned by the decisive liquidity support provided by the European Central Bank to European banks, which has already contributed to a reduction in sovereign bond spreads and eased financial market conditions."
“Finally, the European institutions need to communicate clearly that they are ready to react promptly and to use all instruments at their disposal to buttress the stability and integrity of the euro area”, suggested Mr. Gurría. "They also need to remain committed to implementing fully earlier decisions to improve the financial, fiscal and economic governance of the euro area."