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August 14, 2022
BUSINESS

Ponta-Basescu-Isarescu talks over RON depreciation

European Commission still believes that Greece can stay in the euro and find the way to make sure that it respects its commitments.

Prime Minister Victor Ponta was due to have talks with President Traian Basescu and BNR Governor Mugur Isarescu on setting up a working group with the task of mitigating the effects the situation in Greece might have on the Romanian banking sector and Romania in general, Mediafax notes. ‘The political situation in Greece is not resolved. There are rather negative signs suggesting a return to the polls’, Ponta said. The political stalemate in Greece has highlighted the possibility that the country might quit the euro zone, with Europe having started to estimate the consequences of such decision. That’s why, Eurozone finance ministers met in Brussels yesterday, the talks being expected to be monopolised by the Greek situation. So, the country should intensify efforts to form a government so questions about its financial bailout and continued euro-zone membership can be more quickly answered, the European Commission said yesterday, WSJ reports. Those involved should step up those efforts so Greece can form a government and then afterwards we can see what steps should be taken,” EC spokeswoman Pia Ahrenkilde-Hansen told reporters. “We want Greece to remain in the euro.” Her comments come after European Commission President Jose Manuel Barroso told Italian news channel SkyTG24 over the weekend that if a club member doesn’t respect the rules, “it’s better that they leave.” He said he wasn’t talking about any country in particular. Hansen said Barroso spoke in general terms. Greece’s outgoing Prime Minister Lucas Papademos has warned the country’s political leaders the government may have difficulty in meeting its cash obligations as of the start of June, a Greek newspaper reported yesterday, according to marketwatch.com.  In a note Papademos sent to Greek President Karolos Papoulias and discussed in Sunday’s meetings between the president and party leaders on forming a coalition government, the prime minister said it is likely Greece will have significant difficulties in covering its cash payments in June, according to newspaper Ta Nea, citing unnamed sources from Papoulias’ office.Europe was “certainly more resilient” to a possible Greek exit than it was two years ago, when the bloc would have been “massively underprepared”, European Union Economic and Monetary Commissioner Olli Rehn said, businessday.co.za reports. “I still believe that Greece can stay in the euro and find the way to make sure that it respects its commitments,” Mr Rehn said. “It would be much worse for Greece and Greek citizens, especially for the less well-off Greek citizens, if Greece did leave the euro than for Europe as such. Europe also would suffer, but Greece would suffer more.”

Der Spiegel’: EU may continue to finance Greece even if it exits euro zone

 

One of the most prominent European publication, ‘Der Spiegel’, opened its yesterday issue with a piece called ‘Acropolis, adieu – Why Greece should leave the euro zone’. One of the main things highlighted by ‘Der Spiegel’ is the possibility that the EU may continue to finance the Hellenic state even if it exists the euro zone. The European Commission is not considering a relaxation of conditions set forth in the agreement with Greece, EC spokesman Amadeu Altafaj said on Sunday, denying a piece of information previously run by the Real News Atena.

 

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