Olli Rehn revealed on Wednesday that the European Union is trying to implement a comprehensive plan to contain the sovereign debt crisis.
Europe needs to boost the lending capacity of the debt crisis fund as it faces “a vicious circle of high unemployment, high debt and low growth,” according to the European Union Economic and Monetary Commissioner.
“The effective lending capacity of the EFSF should be reinforced and the scope of its activity widened,” Rehn said in a speech in Brussels. “We need to review all options for the size and scope of our financial backstops”.
“This calls for a comprehensive and determined response by the whole European Union,” Rehn added.
He ruled out debt restructuring for Greece or “any other Euro-area member state”, as it would have such serious negative consequences.
The European Monetary Affairs Commissioner unveiled the “Annual Growth Survey” on the impact of the crisis on the economy, employment, public debt and growth sectors.
The move to tighten coordination across the European Union, aims to “break the vicious circle of unsustainable debt, financial turbulence and sub-optimal growth”, according to Rehn.
The Survey highlights ten actions regarding macro-economic area, structural reforms and growth enhancing measures.
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