ECONOMY

EFSF needs to be credible, says EU’s Rehn

The European Union’s EFSF rescue fund needs to be credible and respected by markets to be effective and policymakers will look at its powers continuously once it is up and running, European Union Monetary Affairs Commissioner Olli Rehn said on Friday.

Asked whether the fund needed to be substantially bigger than currently to calm market turmoil, Rehn said he did not want to get into talking about numbers, but added:

“To be effective the EFSF needs to be credible and respected by the markets. And therefore we need to be continuously assessing it, once up and running, in its objective form with these goals in mind.»

Rehn also said that the main message from Commission President Jose Manuel Barroso in a letter to EU leaders on Thursday was for them to move swiftly to implement a deal over Greece.

“It is now essential to speed up the implementation and the approvals in the member states in order to make this agreement of the 21st July materialize. That was the key message. I think that’s obvious that that is what needs to be done.»

He said EU officials would also look at longer-term options for the infrastructure of the euro zone, including the idea of euro zone bonds, and would present a report after the summer.

[Reuters]