Global General

EU calls for coordinated action to fight eurozone crisis

(Xinhua)
Updated: 2010-12-09 22:50

ATHENS  -- Europe needed coordinated action and fundamental reforms to resolve the current crisis in Greece and the eurozone at large, a top European official said Thursday.

"This is not a crisis of the euro, but of financial stability across the eurozone," European Union (EU) Economics and Monetary Affairs Commissioner Olli Rehn told a conference here.

"Greece is not the only country facing challenges. Fundamental changes are needed on a European and international level to restore financial stability and we need coordinated efforts," he said.

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During a one-day visit to Athens for talks over Greek's ailing economy, Rehn said the new decade would be decisive for Europe to speed up reforms to governance of the banking sector and the macroeconomic imbalance.

Rehn expressed confidence in the Greek Stability and Growth Program, which is designed to tackle the country's severe debt crisis over next three years.

The austerity and reform plan has been financially backed by the EU and the International Monetary Fund (IMF) since spring when Greece came close to default.

"It appears as a daunting task, but there is proof that it can be done," said Rehn, encouraging Athens to keep implementing policies to promote tax compliance and liberalize markets.

These measures were vital not only to economic recovery but to social fairness, Rehn said in a reference to the strong reaction by Greek society to reforms of the pension system and the labor market.

"I have no doubt that Greece will overcome challenges and return to the path of development. I wish Greek people every success. Rest assured Europe stands by you," he said.

Rehn said eurozone countries had been supportive of the extension of Greece's loan repayment granted by the EU-IMF mechanism.

Greece was allowed to repay its 110 billion euro (US$146.2 billion) EU-IMF bailout loan in late November.