Reuters: US Dollar Report: HIGHLIGHTS-Comments ahead of EU leaders' summit

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HIGHLIGHTS-Comments ahead of EU leaders' summit May 23rd 2012, 17:10 BRUSSELS | Wed May 23, 2012 1:10pm EDT BRUSSELS May 23 (Reuters) - European leaders are to explore ways to revive their stricken economies in talks on Wednesday evening, but the issue of euro-zone bonds and whether they can help alleviate two years of debt turmoil will dominate their summit. Following are comments by EU leaders and officials ahead of the talks: SWEDISH PRIME MINISTER FREDRIK REINFELDT ON EURO ZONE ECONOMY: "The euro zone is moving in the right direction. You can actually see the former huge deficits now shrinking, even though it needs to go further." ON EURO ZONE BONDS: "I am very sceptical about euro bonds, because I think it is wrong, (at) both ends. It creates an atmosphere where the good behaviour (is) punished and the ones that should do more will get some relief." FINNISH PRIME MINISTER JYRKI KATAINEN ON EURO ZONE BONDS: "I don't support euro bonds. "Too many countries have got too many loans for too low a price for too long. "Euro bonds would institutionalise this problem and that's why we are not interested. "Everybody understands euro bonds (would) take a long time to launch." ON GROWTH AND AUSTERITY: "Growth has been on the agenda for years. "I think that we should talk about growsterity, which means austerity measures to really change confidence and at the same time to have measures to strengthen growth. "For instance, lowering some taxes and doing some structural reforms, especially in the labour market." BELGIAN PRIME MINISTER ELIO DI RUPO ON A STRATEGY OF GROWTH: "Ever since I came to the European summit in December, I have been asking for a strategy of growth and stimulus. Today a number of countries support this idea, in particular France and in particular President (Francois) Hollande." "We can do something for businesses. The financial transactions tax, euro zone bonds, euro-projects - we have to give hope back to people. I would say that in the conditions today, it would be appropriate to have a strategy of growth and stimulus. "We can't consider any more that the European Union stays just in the dimension of austerity. In Belgium, we want to be rigorous with the budget, but we also need a stimulus programme." GERMAN CHANCELLOR ANGELA MERKEL ON STEPS TO ACHIEVE GROWTH: "(Today) it's about having an exchange about how we prepare for the summit at the end of June and complete what we have discussed at previous summits, namely to work out growth perspectives for the European Union and the euro zone. "For us, it's about deepening the internal market. I will propose that the mobility of labour market be improved. In some countries workers are sought, in other countries there is high unemployment, particularly for young people. "Secondly, it's about structural reform. It's about closer cooperation in the euro zone regarding the social welfare system, labour market rules. "Thirdly it's about strengthening the role of the European Investment Bank." "Nothing will be decided today. It's an exchange of opinions and then a final agenda at the end of June." ON JOINT EURO ZONE BONDS: "I do not think they would be a contribution to promoting growth in the euro zone as the very similar interest rates that we had for many years led to serious, misjudged developments." BRITISH PRIME MINISTER DAVID CAMERON ON SITUATION IN GREECE AND WIDER EURO ZONE: "Of course this is an important meeting for Britain because what happens in the euro zone affects our country and of course we need a decisive plan for Greece and a decisive plan to get the European economies moving. "But if we are not going to keep coming back and back to meetings like this, we also need to deal with some of the longer term issues at the heart of a successful single currency, having a bank that gets behind that single currency, having coherent long term plans to make sure that single currency is coherent. "We have to address those issues too or these crises will keep occurring." FRENCH PRESIDENT FRANCOIS HOLLANDE ON ENCOURAGING GROWTH: "We have growth propositions on the table. There are many." "No proposition should be ruled out in principle." "We are putting on the table for this council what we think could improve the level of growth. "Today the growth forecasts for 2012 are extremely negative... "For 2013 the forecasts are pessimistic so we have an obligation to lift very quickly the growth rate. "We haven't come together to confront each other... but we have to say what we think - what are the right instruments, the right methods, the right steps, the right initiatives to raise growth? "At the end of June we will take decisions, but for the moment, I think it's decisive that we say what we are thinking." ON SITUATION IN GREECE: "Greece must make an important decision on June 17 and this choice could be European. "France wants the Greeks to remain in the euro zone and the Greeks must respect the engagements which have been made, but at the same time the euro zone must show that it is willing to support Greece." IRISH PRIME MINISTER ENDA KENNY ON JOINT EURO ZONE BONDS: "Euro bonds are one of a range of opportunities for discussion here. Clearly, euro bonds is an issue that will be on the table. I think it is fair that we should explore what that actually means." ON USING THE EURO ZONE'S ESM BAILOUT FUND TO HELP BANKS: "Obviously this would be of interest in Ireland. Clearly an issue like that would be in Ireland's interest and one we would be exceptionally interested in." ON SITUATION IN GREECE: "Clearly this is a matter of quite considerable concern in the European Union and the euro zone. There is a very strong willingness within the Greek population to stay in the euro." ON A FISCAL UNION: "This is an issue where Europe is now squaring up to the realisation that good budgetary rules and fiscal discipline are important, but they are only part of the full picture and you need a strong growth agenda." BELGIAN FINANCE MINISTER STEVEN VANACKERE ON POSSIBILITY OF GREECE LEAVING EURO ZONE: "All the contingency plans (for Greece) come back to the same thing: to be responsible as a government is to foresee even what you hope to avoid. "We must insist on efforts to avoid an exit scenario but that doesn't mean we are not preparing for eventualities. I believe many countries have their contingency plans for the things they want to avoid at all cost, like terrorist attacks, and to say that we don't have a contingency plan would be irresponsible." Link this Share this Digg this Email Reprints

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