“The spread of tensions on the bond market in the euro area is not justified in terms of economic and budgetary fundamentals. It is not justified for Italy and it is not justified for Spain”. This was stated by the commissioner for economic and monetary affairs, Olli Rehn, regarding the debt crisis which is affecting the two major economies of southern Europe. On Italy, Rehn added that our country "has taken measures to achieve a balanced budget by 2014", explaining that "the convinced application of these measures is of capital importance".
Referring to the agreement between Eurozone leaders on the bailout fund, Rehn admitted that the markets "did not react in the desired and hoped-for manner after the agreement of last July 21" and that "the pact must become operational by September: so as to reassure investors”. The fact remains – Rehn explained during a press conference – that some of the causes behind these tensions must be sought outside the euro area. Investor sentiment was negatively influenced by the negotiations on raising the US debt ceiling and by signs of a slowdown in the global economy”. Rehn added that the political will to defend the single currency should not be underestimated.
