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EU's Rehn warns against complacency in fighting debt crisis

12 January 2013 04:08 (UTC +04:00)

Baku-APA.A senior European Union official said Friday that Europe must avoid complacency in battling the debt crisis despite "signs of stabilization" and growing confidence in financial markets, APA reports quoting Xinhua.

"Even if there is less reason for pessimism at the start of 2013, we cannot afford to lower our guard," EU Economic Affairs Commissioner Olli Rehn told a meeting organized by the Brussels-based think tank European Policy Center.

"Instead, we must now capitalize on the improved sentiment and pursue the rebalancing and reforms of our economies with consistent determination," he added.

While pointing to "signs of stabilization" and considerably growing confidence in financial markets recently, Rehn highlighted the daunting challenges still facing the eurozone.

"The coming months will still be difficult because the economy remains weak and our citizens continue to feel the impact of the crisis," he said.

The Commissioner expected Europe to return to growth gradually in the course of 2013, adding that the recovery should become more robust in 2014.

Moreover, unemployment in the eurozone has reached an unwelcome historic high at 11.8 percent, but with a large split between the 4.5 percent in Austria and a wholly unacceptable 26 percent in Spain, Rehn said.

He urged EU countries to continue their "comprehensive" crisis response and "intensify and fine tune it" as there is no silver bullet in solving the crisis.

In 2013, Europe would need to "see through" the rebalancing and reforms of the eurozone, focus on the competitiveness of its economy, find new ways to boost productive investment and access to finance, and intensify the fight against youth unemployment, he said.

"Our patient may be out of intensive care, but it will still take some time before she can be given a clean bill of health," Rehn told the meeting.

"That's why any lapse into complacency would be unforgivable. We need to stay the reform course to revitalize the European economy," he added.