Global Financial Strategy - Barroso hits out at 'insufficient' action

Global Financial Strategy

Search the site >>Advanced search

First for financial regulatory news and views

Barroso hits out at ‘insufficient’ action

Wednesday 18 January 2012 – by [email protected]

European Commission president José Manuel Barroso has hit out at eurozone leaders for coming up with inadequate measures to evenly boost growth across the continent.

In prepared remarks for a speech at the European Parliament in Strasbourg, Barroso admitted that Europe cannot escape its sovereign debt crisis without putting in credible measures to help bolster growth.

With countries having reduced space for investment, growth must come through structural reforms, he claims, alongside targeted investment and increasing the eurozone’s competitiveness.

“The commission has been saying for years what needs to be done, but let’s be frank: action by the member states has been uneven and in some cases insufficient,” Barroso says.

In his remarks, which will be delivered on Wednesday in a speech welcoming Denmark’s presidency of the Council of the European Union, he also says that solid growth cannot be achieved until the euro area crisis is quelled.

Barroso adds that Denmark will be expected to conclude the negotiations of a new fiscal compact – the legislation that caused the UK government to veto a new EU-wide treaty.

Related articles:

Barroso stresses reform on overseas trip

Barroso issues call to arms on Greece

Barroso: Africa needs ‘innovative’ aid

Barroso: ‘Don’t jump to conclusions on Ireland’

EC says “double-dip unlikely”

Making no direct reference to Britain’s veto, Barroso calls on the Danish presidency to play a “constructive role” in acting “as a bridge between the countries that are inside and those outside the euro area”.

The fiscal compact will implement new rules requiring countries to run budget deficits of no greater than 0.5 per cent of GDP, along with increased monitoring of their budgets and an acceleration of the permanent bailout fund, the European Financial Stability Mechanism.

Additionally the 9 December agreement, which was agreed in principal by 26 of the 27 EU member states, will look to further deepen fiscal integration across the bloc. The presidents of the European Council, Eurogroup and commission will put forward a report on how this amalgamation can be achieved in March 2012.

WHAT DO YOU THINK?

Name:

Email:

Comment:

Post as	Anonymous
	Display name

Please, enter security code

No comments yet.

Login	Register	Most read	Most commented
Username Password >> Remember me >> Forgotten your password? >> Sign Up GFS is pleased to offer you a two-week free trial. You will receive a daily email bulletin of the latest regulatory news and analysis and a weekly email round-up. Please complete the free trial form. You will also receive full access to our online site.

EDITOR’S CHOICE

INTERVIEWS & FEATURES

STRAW POLL

Will markets in 2012 have a tougher time than 2011?

FIND A REGION