The Slovenia Times

EU Deal Better than Expected


"Nobody can say that today's meeting spells an end to the eurozone debt crisis, but in my opinion the conclusions may even have exceeded the expectations of eurozone heads of state and government," Pahor told reporters.

The EU leaders agreed to beef up the European Financial Stability Facility (EFSF) to EUR 1trn. Private creditors will take a 50% loss on Greek bonds and the continents banks will be shored up with fresh capital.

Pahor labelled the conclusions an "ambitious mechanism to help Greece, strengthen the banking sector in the entire eurozone and enhancing the coordination of economic policies".

It is perfectly clear, Pahor said, that "Greece's bankruptcy would pose a serious, probably a very serious risk to the entire European banking system" if the agreement had not been reached.

He also pointed the mention of Spain and Italy in the conclusions, saying this would have "political implications and certain consequences on financial markets".

In a statement eurozone leaders welcomed Italy's plans to carry out structural reforms, but they urged Italy to present an ambitious reform roadmap. The European Commission will examine the measures and monitor implementation.

Turning to Slovenia, Pahor said the country had missed the opportunity to make a "soft transition" through the crisis after pension and other reforms were rejected in referenda.

But he stressed that Slovenia was not being mentioned as a problematic country; to stay that way, it must make sure its debt does not rise.

"We have to keep out eyes on one key thing: Slovenia may not borrow beyond the limit that would take it to the camp of risky countries," he said.


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