Letta: germany will not save the euro alone

Letta: germany will not save the euro alone

One country alone cannot solve the problems: "we need a europe with more solidarity," he said on the sidelines of the "suddeutsche zeitung" leadership meeting on economics late friday evening in berlin. Italy to take over EU presidency from greece in second half of next year.

In his speech to german managers, letta called for a vision for europe – also to put euroskeptics and populists in many eu countries in their place: "we must tell a positive story about the future of europe."If populist parties and movements achieve more than 25 percent in the european elections in may 2014, it will be difficult. "We really have to fight a political battle against the populists who want to destroy the european dream."Growth must be stimulated – based on budgets that are under control: "we have no dream today for the next ten years in europe."

The banking union, including resolution rules for ailing financial institutions, is possible without changes to the EU treaties, in latvia’s view. Decisions should be made before the end of the year. The timetable had to be adhered to. Otherwise, it will be difficult to convince the market. In the euro zone, separate institutions are necessary so that the european central bank (ECB) does not have to take on tasks that do not correspond to those of a central bank.

Letta called it another false assumption that italian banks had been trimmed with european cash injections. "The italian banks did not need aid. You always have to emphasize that."Italy has provided the euro rescue fund ESM with 54 billion euros – in addition to the 81 billion from germany: "we didn’t ask for help, we put 54 billion into the ESM to help others."

Next year, italy will reduce its new debt for the first time in five years. The deficit will be below the 3.0 percent of economic output ceiling for the third year in a row, he said. "This is important to note and repeat over and over," said letta. According to government estimates, the italian economy will grow by about 1 percent.

Italian borrowing costs stabilize after governments launch strict austerity programs. But interest rates on italian bonds are still too high, letta said. This would endanger competitiveness. His goal is to print the interest rate for ten-year government bonds at about 3 percent. The interest rate here is currently a good four percent.

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