EU 'ready to do more' for euro stability

The European Union stands ready to do more if needed to ensure the stability of the euro zone area, the president of the European…

The European Union stands ready to do more if needed to ensure the stability of the euro zone area, the president of the European Council, Herman Van Rompuy, said during a visit to Budapest today.

Mr Van Rompuy said EU leaders have taken an impressive series of decisions to stabilise the euro, such as strengthening the stability and growth pact, creating new forms of macroeconomic surveillance and granting emergency loans to Greece and Ireland.

EU leaders also agreed last week to create a permanent financial safety net from 2013 to handle future crisis in the 16-member currency region, which will expand to Estonia next year.

"These decisions constitute the biggest reform of economic and monetary union since the euro was created," Mr Van Rompuy said in a speech at the Hungarian Academy of Sciences.

He said all 27 member states of the EU were fully convinced that the stability of the euro zone was in the core interest of the union as a whole, but added that EU leaders were ready to take further steps, if needed, to shore up the euro.

"Those were important decisions to make the euro zone more crisis-proof, however, we stand ready to do more if needed," Mr Van Rompuy said.

He added that the euro zone as a whole was "fundamentally sound" but called on all EU governments to keep up their efforts in budgetary measures and economic reforms. Mr Van Rompuy also said Europe needed strong economic governance.

Hungary will take over the rotating presidency of the EU from Belgium in January 2011.

Reuters