Accord on tackling debt crisis ‘a major step forwards’ says Dutch Prime Minister

Accord on tackling debt crisis ‘a major step forwards’ says Dutch Prime Minister

The agreement reached by the 17 eurozone countries on tackling the debt crisis is a major step forwards, said Prime Minister Mark Rutte after the summit.

The eurozone leaders reached agreement in the night of 26-27 October on a comprehensive approach to the debt crisis. ‘We have now laid the foundations of Europe’s future in four different ways, and consolidated our monetary union,’ said the Prime Minister.

Mr Rutte mentioned first and foremost the agreements on stricter budgetary discipline. ‘It is crucial to ensure that in Europe a deal is really a deal,’ he said. The summit’s concluding statement affirms that the member states will stick to the recommendations of the European Commission, regarding the implementation of the Stability and Growth Pact.

Greece
New agreements were also made about support to Greece. As part of the package of measures, the banks will forgive half of the Greek debts they hold. Taken as a whole, the package will lead to a reduction of Greek public debt to 120% of its GDP in 2020. Mr Rutte believes that the agreements will make it possible to keep the country’s debt sustainable.

EFSF
The European leaders also agreed that the European Financial Stability Facility (EFSF)’s capacity to aid weak eurozone countries will be increased to €1 trillion. This enhanced capacity will make it possible to resolve existing problems and prevent new ones. The Prime Minister said, ‘We are building a firewall that will stop problems from spreading from country to country.’

Finally, before the Euro Summit there was a meeting of the leaders of all 27 EU member states. They declared that the banks must increase their buffers so that they can withstand the shocks of the debt crisis.

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