The finance ministers of the European Union next week will make a decision to refuse
crisis support from banks , industry and labor market - the EU confident
that the economy has recovered sufficiently from the crisis to continue to substitute
her "budget crutches ."

"If you keep these measures are too long, they may interfere with the processes
adjustments within and across sectors ... "- Said the draft statement
EU Ministers, which will be published after the meeting of ministers at the next
week. EU finance ministers will meet March 16 to discuss financial
Greece's problems and minimize crisis response strategy. Experts and politicians
say that the governments of the block to find a balance - to keep
Support for the period of time sufficient to prevent the termination of
economic recovery, but to remove them in time to keep under
control the budget deficit. The draft ministerial declaration states that
supportive measures for different sectors of industry such as automobile
sector should be eliminated in the first place, as the economic recovery
gaining momentum. "These measures must turn as soon as possible, given the
relatively large fiscal costs on them, and the likelihood that the preservation
These actions could damage the efficient allocation of resources and, therefore,
hinder competition and the functioning of the internal market ", - says
in the project. Measures to support some long-term goals, such as "green"
technologies, as well as research and innovation, will be permitted, provided
that they comply with the rules of the EU state aid. Jobs
With banks and mid-2010, the government should start lifting support measures
labor market, introduced to help companies avoid layoffs. "This
should be phased out (help) at a time when recovery
be sure "- the document says. "According to the latest forecasts
Commission with regard to growth, it could begin in mid-2010 to
EU as a whole, taking into account the historical backwardness with which unemployment
responds to the rise in economic activity "- believe the EU ministers. In
February the European Commission predicted economic growth of the EU in 2010 at 0, 7
percent after a decrease of 4 1 per cent in 2009. Unemployment is
expected to grow further, reaching the January 9, with 9 percent. Incentives
banks to lend to companies that may be canceled at the last turn.
"The refusal of temporary schemes facilitating funding should depend on
the ability of financial institutions to ensure adequate credit
corporate sector. Should continue to closely monitor the
so as to not interfere with the restoration of undue difficulties in providing
loans, "- said the draft statement.

Share This Post: