Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

UPDATE 1-Euro zone needs to be firm with Greece - France

Published 04/25/2010, 06:05 AM
Updated 04/25/2010, 06:08 AM

* Lagarde says "great strictness" to accompany aid

* French minister says Greece has not honoured commitments

(Adds quotes, details, background)

PARIS, April 25 (Reuters) - Helping Greece overcome its debt problems is necessary for euro zone stability but the bloc needs to be firmer with members if it wants to prevent future crises, French Economy Minister Christine Lagarde told a newspaper.

Greece yielded to overwhelming financial market pressure on Friday, appealing to its European partners and the International Monetary Fund for emergency loans in the first financial rescue of a euro zone member.

Asked by French paper Journal du Dimanche whether it was indulgent to support Greece rather than threaten to expel it from the euro zone, Lagarde said:

"It's a cocktail of indulgence and great strictness. We want to stabilise. But that doesn't prevent us from being firm, and we will need to watch the results very carefully," she was quoted as saying in the Sunday paper.

The French parliament will have to approve the rescue plan, and Lagarde said she hoped lawmakers would agree with her view that solidarity with a troubled partner did not mean being lax.

She said the euro zone needed to be more rigorous in the future in reining in its less disciplined members.

"With its incorrect data and unsuitable economic policies, Greece hasn't honoured its commitments. We will need stricter control mechanisms to make sure we don't fall into a bottomless pit. All that will be the mission of the European Commission and the IMF," she said.

To make sure Greece reimburses its aid, the funds would be released gradually according to its needs, she added. "In the case of default on repayment, we will immediately put the foot on the brake," she said. (Reporting by Sophie Hardach; editing by Noah Barkin)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.