European Economic and Monetary Affairs Commissioner Olli Rehn said that nations under pressure from financial markets face a “formidable challenge” to make necessary long-term changes to their economies.
“Countries under intense market pressure have little breathing space to adopt the game-changing reforms that are essential for long-term gain,” Rehn said in an op-ed published in the Wall Street Journal today. The euro area has rescue mechanisms, including bond-buying programs, in place for countries that request aid and are willing to meet strict conditions, he said.
“To ensure that such interventions help to bring down bond yields in a lasting way, they will only be available for member states that pursue sound budgetary policies, adopt structural reforms for growth, and address macroeconomic imbalances,” Rehn said. “Conditions are set via the established political processes between national and European-level leaders.”
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