Don't miss

Replay


LATEST SHOWS

MEDIAWATCH

« The dress » is back but why don’t we see black and blue ?

Read more

REPORTERS

Chad's war against Boko Haram

Read more

THE WORLD THIS WEEK

Rape in India, Russia after Nemtsov, France scolded for Smacking

Read more

THE WORLD THIS WEEK

Netanyahu Warns Congress against Iran; Clinton's Got Mail

Read more

#THE 51%

Gender equality in the classroom: A delicate balancing act

Read more

FRANCE IN FOCUS

Inside a school for imams

Read more

#TECH 24

MWC 2015: New smartphones unveiled

Read more

IN THE PAPERS

Paris, world tattoo capital

Read more

IN THE PAPERS

'Fair play won't stop Putin - it's time for sterner stuff'

Read more

Business

Spain and Italy do not need bailout, says EU official

Video by FRANCE 24

Text by News Wires

Latest update : 2011-08-05

EU Economic Affairs Commissioner Olli Rehn (photo) said Friday that neither Spain nor Italy would require a bailout, but that both needed to strictly adhere to austerity measures. He added that the market turmoil of recent days was “unjustified”.

AFP - Neither Italy or Spain will need to be bailed out but both eurozone economic giants need to strictly implement planned reforms, EU Economic Affairs Commissioner Olli Rehn said on Friday.

"I do not believe either of these countries will need a programme," Rehn said as he sought to sooth market concerns that the third and fourth largest economies in the 17-nation eurozone could follow in the footsteps of smaller beleaguered euro nations, Greece, Ireland and Portugal.

Italy and Spain have faced record borrowing costs on markets this week amid fears the pair could be next in line for trouble as Europe's debt crisis spreads from weaker peripheral countries.

The market unrest seen in the last few days was unjustified "on the grounds of economic fundamentals," Rehn said.

"It is not justified for Italy. It is not justified for Spain."

Rehn said the drama on the markets was simply "incomprehensible," given there had been no major changes in the economies of either nation and that both had committed to ambitious reforms for "fiscal consolidation (and) ... to put their economies back on track."

But in the case of Italy, approval and implementation of a welfare reform plan currently before parliament "should be acccelerated" while further labour market reforms and the opening of closed professions "should be prioritised," Rehn said.

Turning to Spain, Rehn welcomed its "bold reforms" while saying that, as for Italy, "forceful implementation is paramount."

Madrid needed to complete moves to strengthen its banking sector and ensure fiscal consolidation was strictly implemented at the regional level.

 

Date created : 2011-08-05

  • FINANCIAL CRISIS

    European markets tumble amid euro zone debt fears

    Read more

  • EUROZONE

    EU commission chief calls for bigger bailout fund

    Read more

  • ITALY

    Berlusconi vows to boost economy, calm market fears

    Read more

COMMENT(S)