Wednesday, March 04, 2009

Nothing to see here...

...everything is OK in the Euro area. Almunia says so.

"By definition these kinds of things should not be explained in public"

And what "definition" would that be, Mr. Almunia?

Wonderful propaganda. Who knows how bad it really is across the pond, but the world has caught on that its worse than what the U.S. will experience.

UPDATE 3-Euro zone can bail out members if needed - Almunia
2009-03-03 17:39 (UTC)
By Jan Strupczewski and Marcin Grajewski

BRUSSELS, March 3 (Reuters) - The euro zone has a way of bailing out its members if they face a crisis before they have to seek IMF help, but this must remain confidential, European Monetary Affairs Commissioner Joaquin Almunia said on Tuesday.

Although no bailout possibility existed under European Union laws for euro zone countries, there was a solution that could be used, Almunia told a seminar.

'If a crisis emerges in one euro area country, there is a solution ... Before visiting the IMF, you can be sure there is a solution and you can be sure that it is not clever to talk in public about this solution,' he said.

'But this solution exists. Don't fear for this moment -- we are equipped intellectually, politically and economically to face this crisis scenario, but by definition these kinds of things should not be explained in public,' he said.

Speaking at a later event in the European Parliament, Almunia said the euro zone was probably experiencing the worst moments of the economic crisis in the current months.

'We are living in those months in the worst period of the crisis,' he said. 'I hope in few months we can consider the worst of the recession is behind us.'

German Finance Minister Peer Steinbrueck said in February that although EU rules said countries should not help each other within the currency area, all members of the bloc would have to help 'if it came to a serious situation'.

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