Finance

Finance

Europe has task of protecting euro: Hollande

15 June 2012 02:23 (UTC +04:00)

Baku-APA. The European Union (EU) has the task of protecting the eurozone from speculation attacks, French President Francois Hollande said here on Thursday, APA reports quoting Xinhua.

"It is Europe’s task to safeguard its single market to protect it from the shocks of international financial markets," Hollande told a press conference after meeting Italy’s President Giorgio Napolitano and Prime Minister Mario Monti in Rome during his first official visit to the Mediterranean country.

Hollande said the European banking system faces the "challenge" of protecting itself from speculation.

"Europe is a political project ... We need to find new financial instruments based on a better integration. Virtuous Member States must not get sucked into speculation," he said.

The French president said such issues will be at the center of a meeting with Italy, Germany and Spain in Rome on June 22 to set the stage for the June 28-29 EU summit that is supposed to map out the eurozone’s future.

In particular, the three principles of growth, stability and reinforcing of the monetary union should be also high on the agenda of the upcoming G20 summit in Mexico on June 18-19, he added.

"I do not want that Europe is seen as an ill continent," he said, adding the EU has a remarkable economic strength, a long history and all the necessary characteristics to walk towards a flourishing future.

Hollande added he "fully agreed" with Monti on the trust that Greece deserves for having made "very important efforts" in tacking the economic crisis.

"We put our confidence in Greece, and Greek people should put the same confidence in us honoring their commitment," he said.

Monti also reaffirmed his "will that Greece remains in the eurozone," and called himself confident that Italy and France will give their "highest contribution for the solid development of Europe."

The Italian prime minister said the two leaders shared the will to adopt new financial instruments such as the issuance of eurobonds to regain confidence on international markets, and enhance growth that is not in contrast to austerity.

"We agreed in positively valuing what has been done at the European level to tackle the crisis, including the intervention in support of the Spanish banking system. What has been done until now was not a small thing, but is not sufficient," Monti said.

"This is a crucial moment for the EU and for the entire world," he added.

Regarding Italian-French ties, Monti said they are increasingly positive, with bilateral trade amounting to 70 billion euros (88 billion U.S. dollars).

The two countries share many projects both on the industrial and cultural levels that will be further implemented during the next bilateral meeting scheduled for the end of the year in France, he said.