BRUSSELS, April 14 (Reuters) – Portugal may need additional
fiscal cuts this year to rein in its wide budget deficit as
economic growth and government revenues may prove lower than
expected, the European Commission said on Wednesday.
The European Union’s executive called the Portuguese
medium-term fiscal plan “ambitious and quite concrete” but noted
it focused mainly on 2011 onwards, and said the country should
improve its competitiveness, overhaul loss-making state firms
and lower its ballooning current account deficit.
BRUSSELS, April 14 (Reuters) – The European Union executive
plans to give more teeth to repeatedly breached rules on budget
discipline and increase economic surveillance across the bloc to
avoid any repeat of the fiscal crisis suffered by Greece.
The European Commission said on Wednesday it would propose
new measures next month to prevent build-ups of budget deficits,
public debt and economic imbalances.
BRUSSELS, March 25 (Reuters) – The financial aid mechanism
for Greece agreed by euro zone leaders on Thursday is workable
but unlikely ever to be activated, European Central Bank
President Jean-Claude Trichet said.
“I am extraordinarily happy that the government of the euro
area found a workable solution,” Trichet told an unscheduled
news conference after a euro zone leaders’ meeting.
BRUSSELS/ATHENS (Reuters) – The European Union’s monetary affairs chief urged the bloc’s leaders on Friday to agree a standby aid package for Greece next week but France and Germany struck different notes and the euro slid.
EU heads of state and government will discuss the issue at a summit in Brussels next week after Greece said it could not deliver promised deficit cuts if its borrowing costs remain so high and may have to call in the International Monetary Fund.
BRUSSELS, March 19 (Reuters) – The European Union’s monetary
affairs chief urged the bloc’s leaders on Friday to agree on a
standby aid package for Greece next week after Athens said it
could seek IMF help if it gets no firm promise of European aid.
EU heads of state and government are expected to discuss the
issue at a summit in Brussels next week.
BRUSSELS/ATHENS (Reuters) – Greece raised the stakes on Thursday in its quest for EU help to tackle its debt crisis, warning it cannot achieve promised deficit cuts if its borrowing costs remain high and might have to call in the IMF.
Market concerns it may prove impossible to construct a euro zone financial safety net for the currency area’s most heavily indebted member due to German reluctance sent the euro lower, hit Greek bank shares and raised the risk premium on Greek bonds.
BRUSSELS, March 18 (Reuters) – Greece’s prime minister
warned on Thursday that Athens would not be able to make planned
deficit cuts unless it can borrow money more cheaply and said he
would prefer not to have to turn to the IMF for help.
Prime Minister George Papandreou told a committee in the
European Parliament that austerity measures announced by the
Greek government showed it was committed to the stability of the
euro and that it would carry out necessary structural reforms.
BRUSSELS, March 17 (Reuters) – Leading global economies
should boost cooperation to overcome imbalances, improve
financial regulation and speed up recovery, the International
Monetary Fund’s chief on Wednesday.
Speaking at the European Parliament, IMF Managing Director
Dominique Strauss-Kahn said the appreciation of China’s yuan
<CNY=CFXS> currency would help remove global economic
imbalances, but it could come naturally if domestic consumption
BRUSSELS (Reuters) – EU finance ministers on Tuesday discussed standby plans drawn up by countries using the euro to provide Greece with financial help if it becomes the first state in 11 years of monetary union to seek such aid.
Ministers from the 16-country euro zone announced late on Monday they had agreed the “technical modalities” that would permit aid to be rapidly rolled out but gave no figures and few details of a plan likely to involve bilateral loans.
BRUSSELS (Reuters) – Euro zone finance ministers discussed the mechanics of a financial rescue for Greece on Monday but gave few details of their standby planning as Athens tries to fix its public finances alone.
The rescue would be the first for the monetary union that created the euro in 1999 and the Greek government has been pressing European capitals to go beyond a vague political pledge of support for the debt-stricken country.