“Developments in the sovereign-bond markets of Italy and
Spain are a cause of deep concern. These developments are
clearly unwarranted on the basis of economic and budgetary
fundamentals in these two Member States and the steps that they
are taking to reinforce those fundamentals. In fact, the
tensions in bond markets reflect a growing concern among
investors about the systemic capacity of the euro area to
respond to the evolving crisis.
‘‘The systemic nature of the sovereign-debt crisis was
recognized by the Heads of State and Government of the euro area
at their meeting of 21 July. At that meeting, a unique solution
for the crisis in Greece was found involving a partnership
between the official and private creditors, but it was agreed
that private-sector involvement would not be a standard feature
of the euro area’s crisis management. Agreement was also reached
on ground-breaking measures that will reinforce the euro area’s
systemic response to the crisis by enhancing the effectiveness
of the European Financial Stability Facility (EFSF), by
reforming euro area governance structures and by adapting our
working methods to the needs of crisis management with each
institution playing its part. It is essential, therefore, that
we move forward rapidly with the implementation of all of that
has been agreed by the Heads of State and Government and send an
unambiguous signal of the euro area’s resolve to address the
sovereign-debt crisis with the means commensurate with the
gravity of the situation.
‘‘The necessary technical work to implement the measures
agreed on 21 July is already under way and will be completed as
a matter of urgency. The Commission services are actively
supporting the Member States in this technical work.
Implementation of some of these measures will also require
actions by national parliaments and today I am writing to the
Heads of State and Government urging them to ensure that these
actions are taken without delay.’’
Spain are a cause of deep concern. These developments are
clearly unwarranted on the basis of economic and budgetary
fundamentals in these two Member States and the steps that they
are taking to reinforce those fundamentals. In fact, the
tensions in bond markets reflect a growing concern among
investors about the systemic capacity of the euro area to
respond to the evolving crisis.
‘‘The systemic nature of the sovereign-debt crisis was
recognized by the Heads of State and Government of the euro area
at their meeting of 21 July. At that meeting, a unique solution
for the crisis in Greece was found involving a partnership
between the official and private creditors, but it was agreed
that private-sector involvement would not be a standard feature
of the euro area’s crisis management. Agreement was also reached
on ground-breaking measures that will reinforce the euro area’s
systemic response to the crisis by enhancing the effectiveness
of the European Financial Stability Facility (EFSF), by
reforming euro area governance structures and by adapting our
working methods to the needs of crisis management with each
institution playing its part. It is essential, therefore, that
we move forward rapidly with the implementation of all of that
has been agreed by the Heads of State and Government and send an
unambiguous signal of the euro area’s resolve to address the
sovereign-debt crisis with the means commensurate with the
gravity of the situation.
‘‘The necessary technical work to implement the measures
agreed on 21 July is already under way and will be completed as
a matter of urgency. The Commission services are actively
supporting the Member States in this technical work.
Implementation of some of these measures will also require
actions by national parliaments and today I am writing to the
Heads of State and Government urging them to ensure that these
actions are taken without delay.’’
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