ord33
10-06-2008, 02:52 PM
I think this is some pretty important news to see how they are reacting and dealing with the crisis. I believe they are supposed to meet with North American and (maybe) South America leaders in the coming week.
http://www.reuters.com/article/marketsNews/idUSL629420220081006?sp=true
LUXEMBOURG, Oct 6 (Reuters) - The following are comments by euro zone finance ministers and other officials in connection with their meeting on Monday in Luxembourg.
ECB PRESIDENT JEAN-CLAUDE TRICHET
On principles of coordination:
"I would say that it is extremely important that all partners, authorities can stick to these principles."
"We have offered necessary liquidity to keep the market going. We were first to do it. Our diagnosis was seen as irrelevant then they realised we were right, there was a problem ... governments have faced up to their responsibilities. Who can say we have done worse than the other side of the Atlantic. I don't think you can maintain that there is no coordination -- that is what we have been doing today."
EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA
"We have to act in the euro zone and in the (European) Union in a coordinated way."
"We have systemic risks to confront and we need to rise to the challenge with good responses."
"The global situation is difficult, so we need to have overall responses based on a clear, coordinated, European Union-wide approach."
"It is fair to say that there may be difficulties in financial institutions, certain key ones, that may provoke systemic effects. We need to think carefully regarding making liquidity available. There are systems now for deposit guarantees. We see negative consequences if one country goes off with unilateral actions."
"The Eurogroup should be taking initiatives and Europe together as early as possible."
"An overall initiative should concentrate on rapidity regarding deposit guarantees ... We need to avoid negative consequences of unilateral decisions, we have seen some already."
ECB'S TRICHET
"As far as the ECB is concerned, we confirmed that as in the past we were prepared to provide the market with all the liquidity it needed."
"We have been very active in this field. We acted in good time and to a sufficient degree on money markets and we will continue to provide money markets with all the liquidity they need for as long as that is necessary."
"The figures are very impressive. We are making sure there is enough liquidity in euros and dollar terms. We have a swap of $240 billion with the Federal Reserve to make sure we can guarantee dollar liquidity on this side of the Atlantic. We are going as far as we possibly can."
"The private and public sector must be able to shoulder their responsibilities."
"All in all, governments have been shouldering their responsibilities."
"What Mr Juncker just said regarding the criteria to be respected on intervention, my understanding is that, Jean-Claude, you want to proceed with caution."
"It is fair to say we reached a stage where the pendulum has swung the other way -- it may be some private stakeholders are overestimating the risk, which makes it very difficult for markets to work so my advice is to have calm and trust."
EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER
On deposit guarantees:
"Proposals will be made in this direction.
"The Eurogroup endorsed Paris (the communique). The Stability Pact will be applied fully, won't be denatured in any respect. Regarding the 2005 amendments, the requisite flexibility is already built in for exceptional circumstances."
"We will ensure that systemically important institutions will not be allowed to fail. The (European) Commission will bring proposals regarding deposit guarantees at an appropriate time."
On rescuing financial institutions:
"We all agreed - no financial institution of systemic importance will be failing - that means banks and insurance bodies. We need to think about operational methodologies for saving them, the principles we endorsed will be submitted to Ecofin colleagues tomorrow."
"We will state principles that build on efforts by the Dutch government. We look forward to seeing support tomorrow."
"We mean public intervention including possible management changes in banks in question."
"States must have the power to intervene inter alia in remuneration, we need to be watchful regarding the interests of taxpayers. Taxpayers must benefit when the situation recovers."
"We must be careful to avoid cross-border distortions. Action must be carefully tailored to avoid distortion."
"We will be using national means -- the basic approach will be national, but national must be in a framework of solidarity."
On EU budget rules:
"I made the point in Paris that the Stability and Growth Pact has to be wholly respected because flexibility is already in there."
On Paris communique:
"The French presidency has published a communique. The communique reflected the common intent of the 27 countries of the EU. We will all take all necessary measures to ensure the stability of the financial system. The communique said this may be brought about by injection of liquidity by central banks or targeted measures involving certain banks."
"There might be reinforced arrangements for deposit protection."
"We agreed, we all agreed, that we want to do all we can to stop financial institutions of systemic importance failing."
"There was lively debate - the 16 members endorsed the points in the Paris communique of last Saturday.
"This evening the 16 members of the Eurogroup can sign up to the elements of the Paris communique. I feel confident the 27 (EU members) will endorse the main lines of the communique."
DEPUTY GERMAN FINANCE MINISTER JOERG ASMUSSEN:
"We have said we are of the opinion that a European rescue umbrella wouldn't be helpful because we need the flexibility for each member state to react as is appropriate in its circumstances."
DUTCH FINANCE MINISTER WOUTER BOS
"There are some plans on the table. It is extremely important to arrive at a common European framework."
"I guess in the end it will be about two matters: what does it exactly guarantee and to what level."
"We see too much variety in Europe. We risk a race towards the bottom."
"I very much hope we will be able to avoid a situation like the one in the United States. Basically their taxpayers may buy bad risks. We want to use taxpayers' money to buy healthy companies."
"I am not convinced about unavoidability of recession in Europe, we have a strong starting point."
SLOVENIAN FINANCE MINISTER ANDREJ BAJUK
On banking system:
"We will do everything that is in our powers to ensure the stability of the system."
"The situation in Slovenia is rather different. It is not as cloudy as in western Europe."
"Our (Slovenian banking) system is rather solid."
AUSTRIAN FINANCE MINISTER WILHELM MOLTERER
On European response to crisis:
"We need a coordinated European approach which can also then allow individual solutions ... If it is necessary, I have made clear that we won't leave savers out in the rain ... Of course there is an overall European strategy with national responsibilities."
SPAIN ECONOMY MINISTER PEDRO SOLBES
On European response to crisis:
"My preference would be a common position of different member states on how to handle the future of this difficult situation. The idea of a Paulson plan is quite difficult given the structure of the (European) Union and the United States are completely different. In this sense the ideas which were proposed by our Dutch colleagues had a certain positive impact, but this has to be discussed by all of us."
EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA
Asked whether Europe should have a U.S.-style bailout of the financial sector:
"No, we should have a common approach, coordinated action to avoid unilateral decisions that have negative spill-overs. We should give confidence to individual depositors in our banks and try to improve the situation of the interbank market."
http://www.reuters.com/article/marketsNews/idUSL629420220081006?sp=true
LUXEMBOURG, Oct 6 (Reuters) - The following are comments by euro zone finance ministers and other officials in connection with their meeting on Monday in Luxembourg.
ECB PRESIDENT JEAN-CLAUDE TRICHET
On principles of coordination:
"I would say that it is extremely important that all partners, authorities can stick to these principles."
"We have offered necessary liquidity to keep the market going. We were first to do it. Our diagnosis was seen as irrelevant then they realised we were right, there was a problem ... governments have faced up to their responsibilities. Who can say we have done worse than the other side of the Atlantic. I don't think you can maintain that there is no coordination -- that is what we have been doing today."
EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA
"We have to act in the euro zone and in the (European) Union in a coordinated way."
"We have systemic risks to confront and we need to rise to the challenge with good responses."
"The global situation is difficult, so we need to have overall responses based on a clear, coordinated, European Union-wide approach."
"It is fair to say that there may be difficulties in financial institutions, certain key ones, that may provoke systemic effects. We need to think carefully regarding making liquidity available. There are systems now for deposit guarantees. We see negative consequences if one country goes off with unilateral actions."
"The Eurogroup should be taking initiatives and Europe together as early as possible."
"An overall initiative should concentrate on rapidity regarding deposit guarantees ... We need to avoid negative consequences of unilateral decisions, we have seen some already."
ECB'S TRICHET
"As far as the ECB is concerned, we confirmed that as in the past we were prepared to provide the market with all the liquidity it needed."
"We have been very active in this field. We acted in good time and to a sufficient degree on money markets and we will continue to provide money markets with all the liquidity they need for as long as that is necessary."
"The figures are very impressive. We are making sure there is enough liquidity in euros and dollar terms. We have a swap of $240 billion with the Federal Reserve to make sure we can guarantee dollar liquidity on this side of the Atlantic. We are going as far as we possibly can."
"The private and public sector must be able to shoulder their responsibilities."
"All in all, governments have been shouldering their responsibilities."
"What Mr Juncker just said regarding the criteria to be respected on intervention, my understanding is that, Jean-Claude, you want to proceed with caution."
"It is fair to say we reached a stage where the pendulum has swung the other way -- it may be some private stakeholders are overestimating the risk, which makes it very difficult for markets to work so my advice is to have calm and trust."
EUROGROUP CHAIRMAN JEAN-CLAUDE JUNCKER
On deposit guarantees:
"Proposals will be made in this direction.
"The Eurogroup endorsed Paris (the communique). The Stability Pact will be applied fully, won't be denatured in any respect. Regarding the 2005 amendments, the requisite flexibility is already built in for exceptional circumstances."
"We will ensure that systemically important institutions will not be allowed to fail. The (European) Commission will bring proposals regarding deposit guarantees at an appropriate time."
On rescuing financial institutions:
"We all agreed - no financial institution of systemic importance will be failing - that means banks and insurance bodies. We need to think about operational methodologies for saving them, the principles we endorsed will be submitted to Ecofin colleagues tomorrow."
"We will state principles that build on efforts by the Dutch government. We look forward to seeing support tomorrow."
"We mean public intervention including possible management changes in banks in question."
"States must have the power to intervene inter alia in remuneration, we need to be watchful regarding the interests of taxpayers. Taxpayers must benefit when the situation recovers."
"We must be careful to avoid cross-border distortions. Action must be carefully tailored to avoid distortion."
"We will be using national means -- the basic approach will be national, but national must be in a framework of solidarity."
On EU budget rules:
"I made the point in Paris that the Stability and Growth Pact has to be wholly respected because flexibility is already in there."
On Paris communique:
"The French presidency has published a communique. The communique reflected the common intent of the 27 countries of the EU. We will all take all necessary measures to ensure the stability of the financial system. The communique said this may be brought about by injection of liquidity by central banks or targeted measures involving certain banks."
"There might be reinforced arrangements for deposit protection."
"We agreed, we all agreed, that we want to do all we can to stop financial institutions of systemic importance failing."
"There was lively debate - the 16 members endorsed the points in the Paris communique of last Saturday.
"This evening the 16 members of the Eurogroup can sign up to the elements of the Paris communique. I feel confident the 27 (EU members) will endorse the main lines of the communique."
DEPUTY GERMAN FINANCE MINISTER JOERG ASMUSSEN:
"We have said we are of the opinion that a European rescue umbrella wouldn't be helpful because we need the flexibility for each member state to react as is appropriate in its circumstances."
DUTCH FINANCE MINISTER WOUTER BOS
"There are some plans on the table. It is extremely important to arrive at a common European framework."
"I guess in the end it will be about two matters: what does it exactly guarantee and to what level."
"We see too much variety in Europe. We risk a race towards the bottom."
"I very much hope we will be able to avoid a situation like the one in the United States. Basically their taxpayers may buy bad risks. We want to use taxpayers' money to buy healthy companies."
"I am not convinced about unavoidability of recession in Europe, we have a strong starting point."
SLOVENIAN FINANCE MINISTER ANDREJ BAJUK
On banking system:
"We will do everything that is in our powers to ensure the stability of the system."
"The situation in Slovenia is rather different. It is not as cloudy as in western Europe."
"Our (Slovenian banking) system is rather solid."
AUSTRIAN FINANCE MINISTER WILHELM MOLTERER
On European response to crisis:
"We need a coordinated European approach which can also then allow individual solutions ... If it is necessary, I have made clear that we won't leave savers out in the rain ... Of course there is an overall European strategy with national responsibilities."
SPAIN ECONOMY MINISTER PEDRO SOLBES
On European response to crisis:
"My preference would be a common position of different member states on how to handle the future of this difficult situation. The idea of a Paulson plan is quite difficult given the structure of the (European) Union and the United States are completely different. In this sense the ideas which were proposed by our Dutch colleagues had a certain positive impact, but this has to be discussed by all of us."
EU MONETARY AFFAIRS COMMISSIONER JOAQUIN ALMUNIA
Asked whether Europe should have a U.S.-style bailout of the financial sector:
"No, we should have a common approach, coordinated action to avoid unilateral decisions that have negative spill-overs. We should give confidence to individual depositors in our banks and try to improve the situation of the interbank market."