Solving the euro crisis is a dilemma, says finance minister

Thursday 02 August 2012

Finance minister Jan Kees de Jager said on Thursday that solving the euro crisis is a dilemma because of the behaviour of the southern euro countries.

He was speaking during a debate for which parliamentary party finance specialists had returned from their summer recess.

'It does not go without saying in the southern countries that you make cuts and reforms in order to get your budget in order,' he told the meeting.

In order to ensure countries in need of financial help do make the necessary changes, De Jager does not want to offer 'unconditional support'. However, he does want total support for the euro, according to press reports.

ECB

The meeting discussed European Central Bank president Mario Draghi's comment that the bank would do everything necessary to save the euro.

The labour party PvdA and left-wing greens GroenLinks agreed with the sentiment. The coalition partners, the right-wing liberals VVD and the Christian democrat CDA, also agreed, but pointed out that unlimited financial support could be against the ECB's remit.

Several of those present also raised doubts about allowing the EU's permanent emergency fund ESM to prop up the euro by giving it a banking licence.

De Jager said although this could be of assistance, at the moment he sees more disadvantages than advantages in a banking licence for the ESM.

Greece

No decisions were taken on the situation in Greece. De Jager wants to wait for the judgement of the EU, the ECB and the International Monetary Fund who will report on their latest visit in a fortnight.

De Jager already said that until then the Netherlands will obviously not vote for any new payments to Greece.

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