By Martin Banks - 21st February 2012
It closes the door on a scenario of an uncontrolled default
José Manuel Barroso
Twelve European leaders have signed a letter urging the EU to focus on growth in tackling the economic crisis.
The move comes after eurozone finance ministers agreed on Monday to a second bailout for Greece after marathon talks in Brussels.
Greece will get loans of more than €130bn and have about €107bn of its debt written off.
In return, eurozone ministers said Athens must slash its debt from 160 per cent to 120.5 per cent of GDP within eight years and accept a permanent EU economic monitoring mission.
The country needs the funds to avoid bankruptcy on 20 March, when maturing loans must be repaid.
The letter, sent to European commission president José Manuel Barroso and EU council president Herman Von Rompuy ahead of next week's EU summit in Brussels, calls for urgent action to tackle the EU's "crisis of growth".
The letter, signed by among others the UK and Dutch prime ministers, puts forward an eight-point plan for growth, including reducing the burden on business of EU red tape, advancing the single market through stronger enforcement and driving forward the digital economy.
It was welcomed by ECR leader Martin Callanan who said, "David Cameron is of course, is absolutely right to demand that the EU's leaders concentrate on growth and stop wasting their efforts on treaties that will solve nothing.
"The really encouraging thing is that 11 other countries now seem to see things the same way as us."
The British Tory MEP added, "They too want to see action not words and it seems they too would welcome a rolling back of restrictive social legislation such as the working-time and the agency-workers directives, which cripple expansion and obstruct growth."
Further comment on the latest Greek bail-out came from UKIP leader Nigel Farage who said, "This so-called bailout will not help the Greek people one iota, only German and French banks."
"The Greeks don't need draconian death by a thousand cuts; they need the drachma back so they can reboot their economy.
"Cheap credit from inappropriate euro membership was a disaster for the Greek economy. Eurozone membership is now also a disaster for their democracy. I am absolutely appalled at the Dutch minister calling for permanent EU economic governance of Greek."
Speaking after the bail-out was agreed on Monday, Barroso said, "The agreement is an essential step forward for Greece and for the euro area as a whole.
"Together with the agreement reached with the private sector for a bond exchange offer, in which I am very confident a high number of private sector bondholders will participate, this overall package opens the way for Greece to construct a new and more sustainable economy, better able to generate growth and jobs.
"It also closes the door on a scenario of an uncontrolled default, with all its grave economic and social implications."
He added, "That would be - to use the word of the Greek prime minister - chaos for Greece and for the Greek people."
Have your say...
Please enter your comments below.