Reuters Euro Zone Summit 2013
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REUTERS EURO ZONE SUMMIT 2013 An illuminated euro sign is seen in front of the headquarters of the European Central Bank (ECB) in the late evening in Frankfurt January 8, 2013. REUTERS/ KAI PFAFFENBACH The Euro Zone Crisis is Back ollowing a fractured Italian election result the mour and creating the conditions for the crisis to flare heat is back on the Euro Zone with its auster- up again. Could that be spur to galvanise policymakers Fity mantra offering little to douse growing so- again, following signs they have soft-pedalled on closer cial unease in southern Europe. The European Central economic integration and building a banking union in Bank’s pledge to do whatever it takes to save the euro recent months? The Reuters Euro Zone Summit held took some heat out of the debt crisis but unless Italy over four days in Brussels, Frankfurt, Paris, Madrid and can establish a durable, reform-minded government London pressed a dozen of Europe’s top policymakers it might have put itself outside the ECB’s protection, on their plans, hopes and fears and whether they expect opening a dangerous chink in the currency bloc’s ar- the ECB to have to back up its words with actions. 1 REUTERS EURO ZONE SUMMIT 2013 EU’s Barroso urges leaders to stick to austerity goals BY LUKE BAKER AND MICHAEL STOTT The result leaves the euro zone’s third BRUSSELS, FEBRUARY 26, 2013 largest economy facing an extended period of political uncertainty, with the prospect of uropean Commission President Jose another round of elections if a government Manuel Barroso appealed to EU cannot be formed. In that respect, Italy is Eleaders not to give in to populism on mirroring Greece, the euro zone country Tuesday after Italian voters roundly reject- that sparked the region’s debt crisis. ed the austerity policies pursued by outgo- Barroso said it was incumbent on all EU ing prime minister Mario Monti. and euro zone countries, especially those Speaking at a Reuters summit on the fu- receiving aid from the bloc’s rescue funds, European Union Commission President Jose ture of the euro zone, Barroso said efforts to to retool their economies and cut deficits Manuel Barroso answers reporters’ questions revive Europe’s economy would take time in an effort to improve competitiveness and during the Reuters Future of the Euro Zone and required determination. The fact Ital- stimulate growth. Summit in Brussels February 26, 2013. ian voters had turned Monti out of office Such a prescription had worked for Lat- REUTERS/FRANCOIS LENOIR did not mean his policies, or those advo- via and was showing results in Portugal, Ire- cated by the European Union, were wrong. land, Spain and Greece, he said, with current “I hope we are not going to follow the account deficits narrowing, unit labor costs nificantly, work to increase female partici- temptation to give in to populism because of falling and exports beginning to pick up. pation in the workforce and allow wages to the results in one specific member state,” Bar- While the demands of austerity pro- rise with productivity. roso, speaking with passion, said of the EU’s grams, including deep spending cuts and “We need leadership, democratic leader- efforts to combat the sovereign debt crisis. changes to pensions and labor markets, ship, that has the courage to resist short- “The question we have to ask ourselves were harsh and unpalatable to many, they term considerations and the ability to ex- is the following: should we determine our were necessary, he said. plain to the public what is at stake and what policy, our economic policy, by short-term “It is true that the economic policy that will be the consequences of following an ir- electoral considerations or by what has to be we are implementing in the EU because of responsible path,” Barroso said. done to put Europe back on the path to sus- the financial crisis is a real challenge for po- Such a path would include any delay in tainable growth? For me the answer is clear.” litical leadership,” Barroso acknowledged. implementing reform programs or advo- Monti won just 10 percent of the vote “This requires determination, consisten- cating more public spending, he said, em- in the Sunday/Monday poll, with Italians cy and coherence over time. We never said phasizing that leaders could not afford to overwhelmingly backing the movements it would be easy, it’s going to be difficult, delay or be complacent in overhauling their of former prime minister Silvio Berlusconi and it will remain difficult.” economies. and comedian campaigner Beppe Grillo, But he said the Commission would not “It’s quite clear after the biggest finan- both of whom reject EU-backed austerity. be unnecessarily rigid when it comes to tar- cial crisis in the euro area there are very Financial markets reacted with alarm. gets, providing extra room to meet deficit tough policy decisions to be taken and Yields on Italian 10-year government goals where necessary, as has already hap- implemented, and for that we need coura- bonds, which reflect the degree of risk in- pened with Greece, Portugal and Spain and geous leadership and leadership that is ef- vestors attach to the country, rose sharply may be required for France. fective not only in taking decisions but in and share prices in Milan tumbled. “We have to have a mix of policies that communicating them,” he said. keep the root of fiscal consolidation and at the “We should be serious when we discuss To read all stories same time promote growth,” he said. “Growth economic policy and not give up to imme- is the answer and growth is the goal.” diate political or party considerations.” Euro Zone Summit: Germany, as the bloc’s largest economy, Despite the turmoil that has shaken Click here had a particular leadership role to play and should open up its service sector more sig- CLICK HERE TO CONTINUE READING 2 REUTERS EURO ZONE SUMMIT 2013 Barroso says confident UK will stay in EU BY PAUL TaYLOR AND MIKE PeacOCK the single market for goods and services, REUTERS TV BRUSSELS, FEBRUARY 26, 2013 the EU’s eastward enlargement, its open trade policy and its leading role in the Video: uropean Commission President Jose fight against climate change. click here Manuel Barroso said on Tuesday he But he conceded it was a “reluctant part- Ewas convinced Britain would vote to ner” when it came to institutional issues. stay in the European Union if a promised The head of the EU executive, which into too many areas of national life, and the referendum takes place, despite opinion proposes legislation and enforces European EU should be self-critical, assess its perfor- polls showing a plurality in favor of leaving. rules, said he was convinced ways would be mance and make improvements that could However, he also told a Reuters Sum- found to enable the 17-nation euro zone to respond to those concerns. mit on the future of the euro zone the EU move forward in closer integration while But he added: “With the greatest of could not revise its policies just because one keeping Britain on board. respect for Britain as a member state, we country was thinking of holding a vote on He cited as an example an agreement in cannot now because one country has a ref- continued membership. December to create a single banking super- erendum, or signals the possibility of hav- Prime Minister David Cameron prom- visor for the euro area, in which solutions ing a referendum, put into question all of ised last month to give Britons an in-out were found to accommodate British inter- our policies because of the concerns of that choice on whether to remain in the 27-na- ests even though London has no intention one country.” tion bloc if he is re-elected in 2015, after of joining a European banking union. trying to negotiate a reform of EU policies Barroso said he understood some Brit- Editing by Mike Peacock to meet British concerns. ish concerns about EU authority stretching “Knowing Britain a little bit, and know- ing how important the business community is and the role that different parts of Brit- ish society can have on this open debate, in case there is a referendum, I am confident that Britain will remain a member of the European Union,” Barroso said. Cameron’s Conservative party wants to “repatriate” to London EU powers over a range of social, employment, justice, police and fisheries policies. His Liberal Democrat coalition partners and the main opposition Labour Party both support EU membership. However, the Eurosceptical UK Inde- pendence Party and some dissident Con- servatives favor outright withdrawal from the bloc, and latest opinion polls show about half of Britons want to leave while just a third say they would vote to stay. Barroso lauded Britain’s contribu- tion to Europe, notably in promoting Interview transcript: European Union Commission President Jose Manuel Barroso gestures as he answers questions during Click here the Reuters Future of the Euro Zone Summit in Brussels February 26, 2013. REUTERS/FRANCOIS LENOIR 3 REUTERS EURO ZONE SUMMIT 2013 Italy vote raises risk of euro contagion: Schaeuble BY NOAH BARKIN AND MICHAEL STOTT But Schaeuble stated that he saw stable BERLIN, FEBRUARY 27, 2013 finances as a condition for growth and said France needed to introduce structural re- erman Finance Minister Wolfgang forms of its own to boost growth. Schaeuble said on Wednesday that “France must also do more here,” GItaly’s inconclusive weekend elec- Schaeuble said. “(French President Fran- tion had raised the risk of market turmoil cois) Hollande knows this and so does spreading to other euro countries and urged Pierre Moscovici.” Italian politicians to form a stable govern- Turning to the Mediterranean island of ment quickly.