wildcard
3rd May 2010, 11:08 PM
Wait, Italy is sending Greece money? I thought Italy was on the brink itself?
http://news.xinhuanet.com/english2010/world/2010-05/04/c_13277105.htm
Italian top banker calls for EU stability pact reform following Greek crisis
ROME, May 3 (Xinhua) -- The Italian top banker and head of the Financial Stability Board (FSB) Mario Draghi on Monday called for an urgent reform of the European Union's (EU) stability pact following the shock of the Greek crisis.
Talking at the Pontifical Academy of Social Sciences, Draghi warned of the risk of a possible domino-effect spreading from Greece to the rest of Europe.
He thus stressed the importance of revising the European financial sector as the sole prerequisite for a sustainable economic growth, according to a statement issued by the Bank of Italy.
The lessons learnt from the Greek financial crack indicate that the economic governance of the European Union must be updated and strengthened in order to avoid future similar defaults in other European countries, the central banker observed.
"The stability pact works only if public balances are kept under control, and considering that this is running out of hand in most countries now we need to toughen the pact and implement structural reforms, essential for economic growth."
Draghi noted that the stability pact's reform must be immediately undertaken in order to tackle a possible collapse of Europe's financial system and inject energy into the slow economic process of recovery hindered by many obstacles, first of all important structural reforms.
"We cannot afford losing any more time. The solidity of the financial system is crucial for the sustaining the revival of Europe's economy," he concluded.
The Italian government led by Prime Minister Silvio Berlusconi is preparing a 5.5 billion euro rescue-fund to save Greece from the financial collapse. Italy's contribution is part of the joint EU-International Monetary Fund (IMF) total endowment of 110 billion euros allocated Monday for the Greek emergency.
http://news.xinhuanet.com/english2010/world/2010-05/04/c_13277105.htm
Italian top banker calls for EU stability pact reform following Greek crisis
ROME, May 3 (Xinhua) -- The Italian top banker and head of the Financial Stability Board (FSB) Mario Draghi on Monday called for an urgent reform of the European Union's (EU) stability pact following the shock of the Greek crisis.
Talking at the Pontifical Academy of Social Sciences, Draghi warned of the risk of a possible domino-effect spreading from Greece to the rest of Europe.
He thus stressed the importance of revising the European financial sector as the sole prerequisite for a sustainable economic growth, according to a statement issued by the Bank of Italy.
The lessons learnt from the Greek financial crack indicate that the economic governance of the European Union must be updated and strengthened in order to avoid future similar defaults in other European countries, the central banker observed.
"The stability pact works only if public balances are kept under control, and considering that this is running out of hand in most countries now we need to toughen the pact and implement structural reforms, essential for economic growth."
Draghi noted that the stability pact's reform must be immediately undertaken in order to tackle a possible collapse of Europe's financial system and inject energy into the slow economic process of recovery hindered by many obstacles, first of all important structural reforms.
"We cannot afford losing any more time. The solidity of the financial system is crucial for the sustaining the revival of Europe's economy," he concluded.
The Italian government led by Prime Minister Silvio Berlusconi is preparing a 5.5 billion euro rescue-fund to save Greece from the financial collapse. Italy's contribution is part of the joint EU-International Monetary Fund (IMF) total endowment of 110 billion euros allocated Monday for the Greek emergency.