Rehn supports strengthening of EFSF’s role

EU Economic and Monetary Affairs Commissioner Olii Rehn supports a strengthening of the European Financial Stability Fund (EFSF) and improving lending terms for European countries facing intense fiscal problems.

In a written answer to a question made by PASOK Eurodeputy Annie Podemata, the EU Commissioner reassured that the EFSF will play a basic role in ensuring financial stability in the Eurozone and stressed that the European Commission fully supported the strengthening of the Fund to become more effective, credible and more flexible.

Rehn said that the Fund’s real lending ability should be raised to 440 billion euros, with a parallel increase of guarantees. The Commissioner stressed that the Commission supported a flexible and wider package of measures to support EFSF, “as it believes that greater flexibility in this sector will contribute in improving its effectiveness and offering answers adjusted to each member-state’s situation”. He noted that the Commission also supported efforts to improving lending terms by the Fund.