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EU commissioner optimistic for Spain, Portugal
26 March 2011 @ 13:33

HELSINKI — EU economic affairs chief Olli Rehn said Saturday that he believed both Spain and Portugal could still avoid resorting to the EU's emergency bailout fund.

"Spain's debt burden is lower than the EU average," Rehn told national public broadcaster YLE.

"In addition, Spain began last year making decisive decisions to balance public spending, enact structural reforms both in the pension system and the labour market, and, very importantly, in their own savings bank system," he said.

The European commissioner for economic and monetary affairs pointed to Spain's national savings bank system as a weakness, but said he believed that the government was taking measures that would lead it out of crisis.

"You can see that Spain's inflation rate has not increased in the past few days even though Portugal's rates have risen," the Finnish commissionner noted.

Read the rest of the article at: AFP




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