FACTBOX-Policymakers’ comments on Greek rescue package

May 5 (BestGrowthStock) – Leading policymakers have yet to agree a
completely unified approach to the Greek debt crisis, which
markets fear could spread to other countries in the euro zone.

Following are comments made over the last 24 hours:

(For an overview of Greek debt stories, click [nLDE6351JT] : )

EU MONETARY AFFAIRS CHIEF OLLI REHN

“In order to safeguard the economic recovery, which is still
rather modest and somewhat fragile, it’s absolutely essential to
contain the bushfire in Greece so that it will not become a
forest fire and a threat to financial stability for the European
Union and its economy as a whole.”

“We are not going to propose (an aid mechanism for Spain)
because there’s no need to propose financial assistance.”

“All euro zone member states are taking measures to
consolidate their public finances, Spain and also Portugal.”

“In the next two years, Greece will not have to resort to
private financing, up to 2012, but the funding by the euro
member states and the IMF will cover fully Greece’s financing
needs up to 2012.”

“We assume Greece should be able gradually to return to the
financial market. Still beyond 2012, we will partly cover the
financial needs of Greece if needed.”

IMF HEAD DOMINIQUE STRAUSS-KAHN

“There is always a risk of contagion.”

“Portugal has been mentioned, but it is already taking
measures and the other countries are in a much more solid
situation … but we should remain vigilant.”

“I think the rate at which the Europeans lent should have
been equal to that of the IMF, which is lower by more than half
a point.”

“I think we could have made a greater effort, because a less
expensive lending rate (we have), the more we help the Greeks.”

Greece had been “on the edge of bankruptcy and soon it
would not have been able to pay its civil servants”.

GREEK FINANCE MINISTER GEORGE PAPACONSTANTINOU

“Any form of debt restructuring is out of the question.”

YANNIOS PANAGOPOULOS, LEADER OF GREEK UNION GSEE

“With our strike today, we are continuing our fight against
harsh and unfair measures that hit workers, pensioners and the
unemployed.”

“Our struggle is also a message to the people of Europe that
what started in Greece will soon spread because Europe has shown
it is incapable of confronting this crisis.”

GERMAN CHANCELLOR ANGELA MERKEL

“We’re at a fork in the road.”

“This is about nothing less than the future of Europe — and
with it the future of Germany in Europe.”

“There is no alternative to the aid to be agreed for Greece
if we want to secure the financial stability of the euro area.”

“It must come, to avoid a chain reaction in the European and
international financial system and the risk of contagion of
other euro member states.”

Merkel said Europe would have to tighten its budgetary rules
in future to prevent other countries going the way of Greece.

“Those (EU states) that don’t meet the Maastricht criteria
then forfeit a part of their structural funds or agricultural
funds. And that means, in the case of long-running deficit
sinners, the withdrawal of voting rights, at least temporarily.”

JOCHEN SANIO, HEAD OF BAFIN, GERMAN MARKET WATCHDOG

“Speculators are waging a war of aggression against the euro
zone.”

SPANISH PRIME MINISTER JOSE LUIS RODRIGUEZ ZAPATERO

“Complete madness.” (of a market rumour that his country
would ask for 280 billion euros in aid from the euro zone).

DEPUTY PRIME MINISTER MARIA TERESA FERNANDEZ DE LA VEGA

“The Spanish economy is reliable. We will meet our deficit
target.”

“There is no risk of any contagion effect from Greece. The
fears are unfounded. We will continue to do our homework in
terms of meeting our commitments.”

ECONOMY MINISTER ELENA SALGADO

“The markets have a speculative component … the Greek
situation has exaggerated that component and, simply, the
markets have not believed that the plan we have put into place
to save the situation in Greece will provide the results that we
think it will.”

“In the next few days we have to prove it.”

ECB GOVERNING COUNCIL MEMBER AXEL WEBER

“A Greek default in the current very fragile situation would
pose a substantial risk to the stability of monetary union and
the financial system.”

“There is a threat of serious contagion effects for other
euro zone countries and increasing negative feedback effects for
capital markets.”

“It is decisive that the (aid) programme is tied to strict
conditions, which will be checked quarterly.”

FINNISH FINANCE MINISTER JYRKI KATAINEN

“The markets have not calmed down … because they fear that
national parliaments will not approve the package.”

“The second risk is that Greece’s parliament will not
approve the economy repair plan and the third is how strong are
the other countries, that is, is there a risk of spreading, even
if loans were granted?”

Stock Market Trading

(Compiled by Andrew Roche; Editing by Kevin Liffey)

FACTBOX-Policymakers’ comments on Greek rescue package