Reuters: Market News: HIGHLIGHTS-Euro zone finance ministers meet on firewalls in Copenhagen

Reuters: Market News Reuters.com is your source for breaking news, business, financial and investing news, including personal finance and stocks. Reuters is the leading global provider of news, financial information and technology solutions to the world's media, financial institutions, businesses and individuals. // via fulltextrssfeed.com

HIGHLIGHTS-Euro zone finance ministers meet on firewalls in Copenhagen Mar 30th 2012, 08:30 Fri Mar 30, 2012 4:30am EDT COPENHAGEN, March 30 (Reuters) - Euro zone finance ministers are likely to temporarily almost double their financial backstops on Friday as one of the final moves to end the sovereign debt crisis, although Germany continues to favour a smaller increase. Below are comments made by euro zone finance ministers as they entered the informal talks. GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE On the firewall debate: "To convince the financial markets, we must understand the language of financial markets. And it is more important to the financial markets that we solve our problems. And we are working to solve them in the member states - in Ireland, in Portugal, in Greece" The debate on whether a firewall of 100 or 200 billion euros more "only leads to new speculation and new insecurity. And I hope this debate will be ended at this meeting. Then we will deal with substance and no longer with rumours and speculation." EUROGROUP PRESIDENT JEAN-CLAUDE JUNCKER On ECB job: "We will see. He (Yves Mersch) is the best candidate for the job, but the decision is part of a package. I don't like the word package, but is it something I am deeply involved in." SPANISH ECONOMY MINISTER LUIS DE GUINDOS "We are going to explain (to euro zone finance ministers) this year's budget. It is going to be a budget committed to austerity ... it is going to lay the ground for an economic recovery in our country. "This is a budget that will be convincing, I am sure of that and show the Spanish government's committment to austerity and fiscal consolidation. I think the most striking thing about the strike is that it passed off normally, that incidents were few and the government completely respects all types of protests but logically the government is convinced that our reform is the reform that Spain needs to start generating jobs again. My (euro zone) colleagues are aware of what Spain is doing, they are aware of the measures that Spain has adopted in structural reforms and obviously Spain is a very important country, I think they understand perfectly what the Spanish government is doing, and they are convinced that Spain with these reforms, with this budget, is on the right path to regain growth and leave these problems behind." DUTCH FINANCE MINISTER JAN KEES DE JAGER "We are in favour of an increase. The euro zone seems to be able to reach agreement on the firewalls. We will have to consider what different countries can absorb regarding the increase of the resources for the firewalls." "We must increase the rescue fund. There are a number of countries with problems that could need protection, but for the Netherlands we are very flexible and we want to work together on an increase in the rescue fund. We will discuss Spain. Every country must address its budgets. We cannot have bigger and bigger budgets. All countries, including the Netherlands, must act." FINNISH FINANCE MINISTER JUTTA URPILAINEN "Finland is ready to increase the capacity. But 940 billion is not possible for our side, it's too high, and now we are looking for the result we and other countries could accept." IRISH FINANCE MINISTER MICHAEL NOONAN "Five hundred (billion euros for the firewall) is insufficient. And the two funds together at 700, in my view, is also too low. (German finance minister) Wolfgang Schaeuble mentioned 800 last night -- that seems to me to be getting into the ballpark of what is required. I think 1 trillion dollars is a serious firewall. If you are talking 800 billion euros, it is over 1 trillion dollars and that is a very serious firewall. The maximum I think that could be on the table today would be 940 billion euros. That would be a very impressive figure." FRENCH FINANCE MINISTER FRANCOIS BAROIN "I am confident of our capacity to reach an agreement, we will reach a consensus. The amount? The French position is what we have been saying for severaI weeks, we want an increase in the European firewall against speculation, and an increase in IMF resources, so the idea is to have an increase through those two efforts that will give us a firewall. There will be an agreement on the accumulation of the future fund, operational from July, and the actual stability fund. The amount? I have heard the debate in Germany, there are naturally positions on both sides. What is important is a consensus. In reality it depends on how you approach the issue. What is the important is that the European effort and, in 15 days, the increase in IMF funds offers a really powerful response." EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN On Spain "Spain is in a very difficult situation, but on the other hand Spain has many strengths. Now it is important that Spain continues with consistency in order to impose the sustainability of its public finances." BELGIAN FINANCE MINISTER STEVEN VANACKERE ON FIREWALL, GROWTH "(A solution to the crisis) has a lot to do with discipline and new growth in Europe. I think's it is important that we speak about those these here in Copenhagen so that the medicine, the rescue fund won't have to be used. But obviously markets will only have confidence in us if we agree on a strong rescue fund. We can't consider that the crisis is over. We must find a good middle way between those who seek a (maximum) firewall and those who want it kept to a minimum. But what is crucial is that we are united not just on the rescue fund but also impact of budget cuts and our growth strategy. I am absolutely convinced we will be able to reach a decision (on the firewall). Link this Share this Digg this Email Reprints

You are receiving this email because you subscribed to this feed at blogtrottr.com. If you no longer wish to receive these emails, you can unsubscribe from this feed, or manage all your subscriptions