Regling: Euro Zone to Shake Off Debt Crisis by 2014

Politics » BULGARIA IN EU | August 28, 2011, Sunday // 15:31| Views: | Comments: 3
Bulgaria: Regling: Euro Zone to Shake Off Debt Crisis by 2014 German CEO of the EFSF Klaus Regling (L), pictured with Olli Rehn (C), European Monetary Affairs Commissionner and President of the Eurogroup Luxembourg`s Prime Minister Jean-Claude Juncker. EPA/BGNES

The euro zone will be able to overcome its current debt crisis by 2014, believes Klaus Regling, the head of the European Financial Stability Facility (EFSF).

"One can justifiably expect the crisis to be over within two to three years. In all eurozone countries the fundamentals are improving," the chief of the EFSF, euro zone's rescue fund, told the Spiegel magazine on Sunday.

He argued that all of the euro zone states have already started to put their state finances in order, and some of those worst affected by the crisis – most notably Ireland – are getting back on their feet.

The EFSF CEO urged euro zone countries to implement their savings and reform plans

Regling said the risk that the euro currency will be abandoned is “zero” because both weak and strong countries have an interest in retaining it.

"The risk that the euro is discarded, from whatever quarter, is zero," he said, criticizing what he sees as excessive pessimism in Germany on this topic.

Regling thinks that the situation at the Euro Area is better than the state finances of the USA.

"The US deficit, for example, is three times as high as that of the euro zone,” he is quoted as saying

The EFSF was set up last year to help shore up debt-ridden countries. Its role is shortly to be expanded in line with measures agreed to by euro zone leaders in July.

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Tags: Klaus Regling, EFSF, European Financial Stability Facility, euro zone, euro, Euro Area, ireland, greece, Portugal, debt crisis, debt crises, Germany, USA
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» To the forumComments (3)
temujin - 29 Aug 2011 // 23:50:07

Hercules (Bogomil) Germans have their own way of doing things and it works for them, as Italians have and it worked well for them. Now its one of these trying to make the other change their system. Fact that this happens voids the purpose. Maybe it would be better for the Euro to be more flexible like the Lira used to be. Weaker Euro means more export.

hercules - 29 Aug 2011 // 10:08:35

The Euro Zone was doomed from the start and could never work with the diversity of the countries and economies working within a single currency.

Before the Euro Zone countries like Greece could devalue when a catastrophe appeared, but now they can’t and have to be bailed out by others.

The mentally of the German’s and the Greeks are a million miles apart!

temujin - 29 Aug 2011 // 06:34:23

There is syncronization of mentality to be done. Italians are used to keep their salaries even when they dont sale anything making inflation inevitable. Italy growth during the 90s and later manifested with a turbulent Lira. Germans force their way of doing things upon others. Both wont change soon and a single currency needs this.

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