More focus needed on state debt in future-EU’s Rehn

HELSINKI, May 16 (BestGrowthStock) – More focus is needed on the
state debt of euro zone members in future to prevent possible
problems in one country spreading to others, European Union
Economic and Monetary Affairs Commissioner Olli Rehn said.

“Because euro zone countries’ economies are tightly
connected by a currency, it is important to prevent a weak
economic policy in one country from threatening the success of
others,” Rehn wrote in Finnish daily Helsingin Sanomat on
Sunday.

“Economic policy monitoring has earlier paid attention
almost entirely to deficits, and debts have grown excessively
large.”

“In the future the development of state debt must be
followed more closely than before and possible downward spirals
must be cut off in time,” he wrote.

Rehn said actions taken by the EU in past weeks had
prevented debt-laden Greece’s problems from spreading out of
control, but the crisis also revealed a flaw in the EU’s
economic backbone.

“We stopped the spread of a bushfire in Greece from
becoming an uncontrollable forest fire,” he said.

“The economic and monetary union’s problem has been that
the monetary pillar has been from the start stronger than the
economic one. The crisis has shown that both are needed,” Rehn
said.

(Reporting by Brett Young; Editing by Paul Tait)

More focus needed on state debt in future-EU’s Rehn