HIGHLIGHTS-EU’s Rehn on Portugal budget plans

BRUSSELS, April 14 (BestGrowthStock) – The following are comments by
European Economic Affairs Commissioner Olli Rehn on Wednesday
concerning Portugal’s medium-term fiscal programme.

Portugal’s plan for reducing its budget deficit is ambitious
and concrete but the country may need additional fiscal cutbacks
if economic risks materialise, the European Commission said.

On ousting countries from euro zone:

“My reading of the (EU) treaty is that this is not possible
according to the current treaty. This idea would require a
treaty change and personally I have some reservations whether
this idea is in line with the principles of the founding fathers
of ever-closer union.”

On possible euro zone/IMF aid for Greece:

“We are currently working out the merger of the programmes
with the IMF and do not want to speculate on the sequencing of
events if Greece requests … and needs aid.”

On Portugal:

“If risks to the macro and fiscal developments materialise
in the short term, additional measures might be needed
especially for this year.”

On countries that break EU budget rules:

“We should consider how we better use existing instruments.”

“We should also consider whether … certain penalties would
be effective to rein in deficits.”

On surveillance:

“We need to deepen surveillance to address economic
imbalances and competitive divergences.”

“The latest developments in the European economic area, not
least around Greece, have shown a pressing and urgent need to
reinforce policy coordination in the euro area and in the
European Union as well.”

Stock Investing

HIGHLIGHTS-EU’s Rehn on Portugal budget plans