Set in the backdrop of lingering concerns over rising fiscal imbalances, EU President Herman Van Rompuy said that it is the collective responsibility of the Euro Zone members to safeguard financial stability in the region.
After the meeting in Brussels, German Chancellor Angela Merkel made it clear that Greece has to abide by the rules set forth by the Euro Zone and must commit itself to strict fiscal prudence.
The 16-member Euro currency area, however reiterated that they “fully support the efforts of the Greek government and their commitment to do whatever is necessary including adopting additional measure.” Greece has EU’s widest deficit at 12.7 per cent of GDP last year and a public debt of 152 per cent of GDP. Spanish and Portuguese debt faces similar challenges in paring their deficits.
While it is widely believed that EU will come to the rescue of Greece, the elite group stop short of laying out any detail formal plans. It could be voluntary loans from member-states or an accelerated disbursement of EU regional aid funds to Greece, said Donald Tusk, Poland’s prime minister, but it won’t be a ‘blank cheque’ in the favors of Greece.