Patience will pay off – that is the message to investors from Europe’s Economic and Monetary Affairs Commissioner.
Olli Rehn said Italy and Spain do not need bailing out as measures in place will soon take effect. He admitted that financial markets have been disappointed with last month EU agreement to tackle the crisis but stressed a rescue plan is now only “weeks away.”
“We need to stand ready in order to adapt our crisis managment tools to be credible and effective, of course this goes for the EFSF (European Financial Stability Facility) as well. To be effective the EFSF needs to be credible and respected by the markets,” said Rehn.
In a further effort to calm fears over Europe’s sovereign debt, French President Nicolas Sarkozy, will speak by telephone on Friday to German Chancellor Angela Merkel and Spain’s Prime Minister Jose Luis Rodriguez Zapatero.