Monday

22nd Jan 2018

Euro-saving operations due within 'days,' says Juncker

  • "We have come to a crucial point. There is no more time to lose," Juncker said (Photo: consilium.europa.eu)

Eurogroup chief Jean-Claude Juncker has said there is "no time to lose," as the world talks about a eurozone breakup, with joint action by the European Central Bank and the eurozone bailout funds expected in the coming days.

"We have come to a crucial point. There is no more time to lose," Juncker said in an interview published both in Le Figaro and Sueddeutsche Zeitung on Monday (30 July).

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

ECB chief Mario Draghi last week said the bank was ready to do "whatever it takes to preserve the euro" and hinted at more government bonds being bought up, a move which would help Italy and Spain bring down their record-high borrowing costs.

Juncker said the eurozone bailout fund, the European Financial Stability Facility (EFSF) - which has roughly €200 billion left to spend - will also contribute to the rescue operation.

Under current rules, the EFSF can buy bonds directly from the governments only for bailed out countries. It can buy bonds on the free market for other eurozone countries too, but they have to make a formal demand and sign a memorandum of understanding - also seen as a 'bailout lite'.

German subsidiary

Juncker also blamed Germany for treating the eurozone "as its subsidiary" and taking eurozone decisions according to internal political interests. "If all 17 governments would do this, what would be left of that was is common? Why is it like this?" he said.

He criticised German politicians - including German economy minister Phillipp Roesler - who in recent weeks have said a Greek exit from the eurozone would be better than keeping the country in.

"Those who think a Greek exit would solve the problem are wrong. They do not understand a thing about the deep origins of the crisis. Greece needs to improve its record, certainly. But nobody can ignore the staggering cost of an exclusion for the others. Anything else is low politics," Juncker said.

Meanwhile, over 71 percent of Germans want Greece to leave the euro if it did not live up to its austerity promises, a poll published Sunday by Bild newspaper shows.

Over 50 percent of Germans also think their country would be better off outside the euro. Only 29 percent said the German economy would hurt if it was to leave the common currency.

ECB chief indicates upcoming help for Spain

Markets rallied after European Central Bank chief Mario Draghi on Thursday pledged to do "whatever it takes" to salvage the euro and suggested the bank may buy more government bonds.

German coalition deal aims for 'Macron-lite' EU renewal

Merkel and Schulz clear the first hurdle of coalition talks, but the SPD's full membership backing is still needed. The likely coalition parties express support for Macron's eurozone reform ideas, but remain cautious.

News in Brief

  1. Belgium lowers terror alert level
  2. France, Spain set to gain seats in post-Brexit EU parliament
  3. Orban family probed over 'fraudulent' EU projects
  4. Spanish judge rejects Puigdemont arrest warrant
  5. Austria plans to sue Commission over Hungary's nuclear plant
  6. Puigdemont proposed as sole candidate for Catalan leadership
  7. Abbas in Brussels to discuss Palestinian state recognition
  8. Exiled Catalan leader leaves Belgium for first time

Stakeholders' Highlights

  1. Nordic Council of MinistersNordic Solutions for Sustainable Cities: New Grants Awarded for Branding Projects
  2. Mission of China to the EUTrade Between China, Belt and Road Countries up 15%
  3. Nordic Council of MinistersOresund Inspires Other EU Border Regions to Work Together to Generate Growth
  4. Mission of China to the EUTrade Between China, Belt and Road Countries up 15%
  5. AJC Transatlantic InstituteAJC Calls on EU to Sanction Iran’s Revolutionary Guards, Expel Ambassadors
  6. Dialogue PlatformRoundtable on "Political Islam, Civil Islam and The West" 31 January
  7. ILGA EuropeFreedom of Movement and Same-Sex Couples in Romania – Case Update!
  8. EU2017EEEstonia Completes First EU Presidency, Introduced New Topics to the Agenda
  9. Bio-Based IndustriesLeading the Transition Towards a Post-Petroleum Society
  10. ACCAWelcomes the Start of the New Bulgarian Presidency
  11. Mission of China to the EUPremier Li and President Tusk Stress Importance of Ties at ASEM Summit
  12. EU2017EEVAT on Electronic Commerce: New Rules Adopted

Latest News

  1. EU stands by Palestine on Jerusalem
  2. MEPs may bar killer robots and drones from EU research cash
  3. Europe's social democrats are having a hard time
  4. How Oettinger's CO2 permit sale could fill Brexit blackhole
  5. New Polish foreign minister tries to charm EU commission
  6. Middle East, Messi and missing MEPs on agenda This WEEK
  7. Instagram and Google Plus join EU anti-hate speech drive
  8. EU wants 'entrepreneurship' in education systems