Last quote by Jyrki Katainen
Jyrki Katainen quotes
There are only a few countries who can afford to stimulate their economies. But the best stimulus which all Member States can do now is to carry out reforms. To really change or reform the country in a way that makes it more flexible, when it comes to the labour market or when talking about how easy their business environment is. So flexibility and stimulus mean they have to be ready to reform our societies, and many governments are doing this.
Greece has been helped by other European tax payers. And it is clear that they have to continue to make growth-friendly reforms. Right today it is too early to predict the final outcome. But the commission is very committed to helping Greece. We have to make sure that people can get medicines and health care if needed. So we are on the side of Greek people. and there are 19 Member States, 19 electorates, 19 governments and parliaments who must accept a help programme, and of course the most important thing is that the Greek government is willing to cooperate.
Let's say the investment plan, because there is so much work to do. I am not worried about a deflationary spiral at the moment. I am working very hard for the investment plan because It can make a change. It will not change the whole world, but it will help private investors to invest in Europe, to invest in real job creation projects all over Europe.
It has been very helpful and it has stabilized the situation. If you look at the monetary policy and you add the cheap Euro and you add the cheap price of oil, all together they create a tremendous stimulus to the eurozone economy.
Greece has achieved a lot of good things. If you look at the primary surplus, it is one of the biggest in Europe. Also, economic growth is very strong. But now after the elections, the fundamentals of the economy have not changed, and the Eurogroup just took the first step this week. And they will continue to try and find a solution which is acceptable to all 19 Member States. So we have to accept the truth that the economy in Greece hasn't changed even though the government has.
The Greek authorities must make sure that confidence around the country will increase. This means they must show the courage to make growth-friendly reforms. Also they must take care of their fiscal policy because otherwise, if uncertainty grows as it has done in the last few weeks, no one will invest in Greece. But for instance, a new fund could finance projects, private sector projects in Greece. Also it has been constructed in such a way that it can take more risks. But confidence must be at good levels, otherwise nobody will want to invest in Greece.
Based on our assesment of the draft budget plans and our autumn forecast, it cannot be excluded that the Commission may need to adopt steps under the excessive deficit procedure for some member states.
What will of course be fundamental will be the respect for fiscal efforts measured in structural terms.
It is never enough, if one looks at the size of the problem, but the European budget is not the primary solution for youth unemployment. The main issue is how well all the member states can improve their competitiveness and create real jobs.
All stimulus packages need to be temporary. We can't go on like this after the crisis.