Juncker warns Italy and France Act or unpleasant consequences – AGI – Agenzia Journalistic Italy

Juncker warns Italy and France Act or unpleasant consequences – AGI – Agenzia Journalistic Italy

17:36 December 10, 2014

(AGI) – Rome, December 10 – Italy and France will have to implement without delay the promises of new reforms and new efforts to comply with the parameters of the Stability Pact ‘EU, otherwise “the consequences will not be pleasant.” The tough warning comes from the European Commission president, Jean-Claude Juncker, in an interview with ‘Faz’, defends the decision to grant the two countries as required more ‘time to patch up the accounts, but warns: “If the words do not follow the facts, the consequences will not be pleasant. ” “We have to trust in Italian and French, and then we’ll see, probably in March, as and ’round,” added Juncker, “without the measures announced, there will be’ a worsening of the excessive deficit procedure”. Rome, like Paris, has passed a temporary promotion the first judgment of Brussels on the budget
2015. A new assessment will come ‘ ;in March and on that occasion Berlaymont could advance the official request for further corrective action. The austerity ‘therefore remains the guiding star of the Eurozone in a context where an exhausted Greece back in the crosshairs of the markets. Investors fear that the early convening of the presidential election will end with the defeat of the candidate of Prime Minister Antonis Samaras and, therefore, with a call to the polls lightning. This scenario, according to the polls, would seal the victory of the radical left Syriza, who promised a radical renegotiation of the agreements with the ‘troika’. A worrying prospect for the markets, which today launched a signal to the insiders, disturbing as much as the collapse of the Athens Stock Exchange yesterday. And ‘fact inverted yield curve of Greek debt. That is, the rates on short-term securities exceeded those of long-term bonds (in detail, the three-year touched a record of 9.2% compared with 8.2 % recorded by the ten-year), an event considered a harbinger default. And while Brussels finds himself once again flirting with the prospect of a collapse of Greece, even in Frankfurt the strategy seems clear. Of note today the intervention of the central bank governor of Estonia, Ardo Hansson, among the allies more ‘narrow the Bundesbank, which has rejected in no uncertain terms the possibility’ of a ‘quantitative easing’ plan that involves the purchase of securities State, fearing “risks to stability ‘financial’. “I examined the program and I did that bring ‘governments to increase the deficit, so I think it is an extreme case,” said Hansson. The news ‘that, therefore, the staff of the ECB has already’ prepared a first model of monetary easing and submitted it, albeit informally, to the members of the board. (AGI).