UPDATE 1-EU’s Van Rompuy: ready to ensure euro zone stability

* Euro zone stability “core interest” of EU -President

* Euro zone “fundamentally sound” -Van Rompuy

* All EU governments must keep up econ reforms

(Adds quotes, detail)

BUDAPEST, Dec 21 (BestGrowthStock) – The European Union stands ready
to do more if needed to ensure the stability of the euro zone
area, the president of the European Council, Herman Van Rompuy,
said during a visit to Budapest on Tuesday.

Van Rompuy said EU leaders have taken an impressive series
of decisions to stabilise the euro, such as strengthening the
stability and growth pact, creating new forms of macroeconomic
surveillance and granting emergency loans to Greece and Ireland.

EU leaders also agreed last week to create a permanent
financial safety net from 2013 to handle future crisis in the
16-member currency bloc [ID:nLDE6BE29I], which will expand to
Estonia next year.

“These decisions constitute the biggest reform of economic
and monetary union since the euro was created,” Van Rompuy said
in a speech at the Hungarian Academy of Sciences.

He said all 27 member states of the EU were fully convinced
that the stability of the euro zone was in the core interest of
the union as a whole, but added that EU leaders were ready to
take further steps, if needed, to shore up the euro.

“Those were important decisions to make the euro zone more
crisis-proof, however, we stand ready to do more if needed,” Van
Rompuy said.

He added that the euro zone as a whole was “fundamentally
sound” but called on all EU governments to keep up their efforts
in budgetary measures and economic reforms. Van Rompuy also said
Europe needed strong economic governance.

Hungary will take over the rotating presidency of the EU
from Belgium in January 2011.

Van Rompuy and Hungarian Prime Minister Viktor Orban will
hold a joint press conference at 1045 GMT.
(Reporting by Gergely Szakacs, editing by Mike Peacock)

UPDATE 1-EU’s Van Rompuy: ready to ensure euro zone stability