Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Nigeria mosque blast: Scores die in attack during prayers in Kano

Read more

THE WORLD THIS WEEK

Sarko Bites Back: Ex-President Determined to Reclaim UMP Leadership

Read more

THE WORLD THIS WEEK

No Deal: Iran Nuclear Talks End Without Agreement

Read more

FASHION

"Cloakroom Vestiaire Obligatoire" a tender and hypnotic performance by Tilda Swinton and Olivier Saillard.

Read more

FRANCE IN FOCUS

Learning the language of love

Read more

AFRICA NEWS

Burkina Faso: Calls for probe into 1998 murder of journalist

Read more

FOCUS

Is this the end of Hong Kong's 'Umbrella Movement'?

Read more

#THE 51%

France marks 40th anniversary of abortion laws

Read more

#TECH 24

Virtual insanity? Artist to 'experience life' through Oculus Rift headset for 28 days

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)