| Europe, Italy see light at the end of tunnel, says Monti |
PARIS France and Italy sought on Tuesday to boost confidence that Europe can tackle its debt crisis, with Italian Prime Minister Mario Monti saying he sees “light at the end of the tunnel” for the euro zone.
With European leaders keen to maintain momentum following a series of well received statements, Monti and French President Francois Hollande hailed progress in addressing the eurozone’s debt woes after talks in Paris.
But new data provided a stark reminder of the devastating effects of the crisis, with the European Union saying unemployment across the euro zone hit a record 11.2 per cent in June.
France and Italy “are determined to do everything to protect” the euro, Hollande and Monti said in a joint statement, praising recent remarks by European Central Bank chief Mario Draghi suggesting ECB intervention.
“Member states, like European institutions... must meet their obligations in order to maintain the stability and proper functioning of the euro zone,” they said, calling for the rapid implementation of eurozone reforms.
Speaking to journalists, Hollande said the euro zone must be “defended, preserved and consolidated” and hailed “very significant progress in recent weeks.”
Ahead of the talks Monti expressed confidence the euro zone was finally preparing to take the necessary steps.
“We and the rest of Europe are getting closer to the end of the tunnel. There’s light at the end of the tunnel,” Monti said in an interview with Rai Radio.
Monti said he could sense “greater willingness on the part of European institutions and governments” to implement reforms agreed at an EU summit in June and to take action to help debt-ridden countries.
After Paris, Monti will travel to Helsinki and Madrid as part of a tour he said would help “secure the euro and give a decisive boost to European growth.”
Hopes for a concerted effort to address the two-and-a-half-year debt crisis were raised last week when Draghi vowed to do “whatever it takes” to preserve the euro.
The markets are now waiting for direct intervention to help bring down dangerously high borrowing costs for Italy and Spain and so prevent them needing what would be hugely costly bailouts.
Such hopes were bolstered by a verbal offensive from top European policymakers, including Euro-group chief Jean-Claude Juncker who said the euro zone had reached a “crucial point” and vowed action with the ECB.
In telephone calls with Monti and Hollande, German Chancellor Angela Merkel also agreed to do “everything possible” to save the euro.
Agence France-Presse
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