CORRECTED-EU crisis mechanism must be made unattractive-Rehn

(Corrects quote, first paragraph to reflect dropped phrase
“voluntarily be tempted”)

ZAGREB, May 15 (BestGrowthStock) – The European Union’s 750 billion
euro crisis mechanism must be made so unattractive that no
country will voluntarily resort to it, EU Economic and Monetary
Affairs Commissioner Olli Rehn said on Saturday.

“It is essential that we prepare ourselves for the worst
case scenario. But of course there is the issue of moral
hazard,” Rehn told the annual meeting of the European Bank for
Reconstruction and Development.

“This mechanism must be made so unattractive that no leader
of any (EU) country is voluntarily tempted to resort to this
system.”

Rehn said European Union states with some space in their
fiscal accounts should not accelerate in consolidating their
public sector deficits to help avoid pushing the 27 member bloc
into contraction.

He said Europe needed an exit strategy from anti-crisis
measures that took into account the differing circumstances of
member states and added exit strategies would be the core agenda
item for the meeting of G20 rich nations in June.

Investing Advice
(Reporting by Michael Winfrey; Editing by Ruth Pitchford)

CORRECTED-EU crisis mechanism must be made unattractive-Rehn