Reuters - Video

Edition: US | UK | IN | CN | JP

Video

Euro Zone 2014: Beat populists with growth – Eurogroup chief

Thursday, February 13, 2014 - 04:01

Feb. 13 - Delivering growth and fixing the banks are key tools in countering the rise of extremist parties in May’s European elections, says Eurogroup president Jeroen Dijsselbloem.

▲ Hide Transcript

View Transcript

Going into elected to the elections and by just telling him telling me yes vote is what we're going to do instead of showing some results very tricky. The results that we can show and hopefully hopefully it will become even stronger growth for the next couple of months have to do with the economy the economic growth picking up. Unemployment turning around in some countries investments picking up consumer trust strengthening people around the Euro -- And finally of course I think it's very important that we finalized the banking union. That's crucial to show two coaches that we on dealing with the financial sector. Which has cost us a lot economically. But also in terms of budgets and and debt for countries. So we have to show. The coaches that we will put the banks right so they will support the economy and otherwise and set a getaway around. And -- two of the 55 billion -- fond -- resulting banks and to Arizona's tough enough for a start too little component to the size of the banking sector. Only have to realize that the fund is right at the end of the approach to banks some people think. At the we will put. Front. Put the funds right at the front of the money will be easily accessible for banks. But it wasn't the approach is that banks will have to shape up have more capital on -- some -- We will strengthen the supervision strong independent supervisor. Looking making sure that the banks take no -- possible risks. If there is still. Banks get into trouble we will apply -- in other words. Losses will have to be taken also buying investors have put that money in the banks. Only if these three today is off of our approach don't doesn't work. Then some banks will at the end of this process still -- money from the fund but it'll be an exception of the very very exceptional. The three layers of the buffaloes -- supervision and the Palin will be very strong. And protects the banks but also protect the taxpayers. And therefore I think 55 billion will be certainly will be enough. To deliver on both her growth and opened the eurozone. Food. -- economies need reforms. Because there -- -- that eurozone government covenants to new laws that we have can be linked. To prevent abuse link between for instance with the production of and the budget deficits. Reforms. So. Certain incentives. From the eurozone. To help this process along. Yeah I think the AM the way that we had dealing with the budgets and bringing down not deficits etc. has proved to work. So the mechanism is strong and effective. But now I think we have to put more emphasis on pushing forward the reforms making Europe more competitive. Which deals with labor markets pension systems product markets centrum. The question is how come we put some pressure on that process and as you know a lot of discussion is going on about contracts and budgets etc. My plea would be to use the effectiveness of budgetary mechanisms. To pressurized the reform agenda the way to do that is to say eighth country needs his country's Oscar for more time in that budget procedures. And the commission sometimes gives more time the commission should always in fonts make Leo what reforms unnecessary as a condition. Precondition. To allow countries more time in the budgetary. Approach. Is you have to do with reforms now not implicit. But explicit as part of the deal which is explicit right from the start that I think is the most effective way. To push forward some of these reforms which have taken too long.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

Euro Zone 2014: Beat populists with growth – Eurogroup chief

Thursday, February 13, 2014 - 04:01