Press Releases

Europe needs more expeditious decision-making

Wednesday, October 26, Brussels - President Dalia Grybauskaitė attended the informal European Council meeting to discuss a comprehensive set of measures for controlling the euro zone debt crisis.

The euro zone countries submitted to the European Council concrete measures how to consolidate - using the EU's available instruments to a maximum extent - public finances and stabilize the banking sector.

According to the President, now when the financial crisis has turned into debt crisis radical - not interim - solutions are needed as well as effective coordination of action.

"The European Union is too slow in taking decisions, debt solving measures are delayed, and therefore the crisis is only deepening. Europe needs a more expeditiously functioning decision-making mechanism," the President underlined.

In order to prevent a negligent management of finances, Dalia Grybauskaitė said, it is necessary not only to use more stringently the available fiscal discipline instruments, but also to create new ones. All measures to overcome the economic hardships that Europe is facing today are obvious and the EU member states should only find the political will to implement such measures.

A crucial issue at the meeting was how to ensure the stabilization of banks. According to the President, the heads of 27 EU member states gave a political permission to recapitalize problematic banks - to strengthen the capital of banks primarily with private funds and, if necessary, the funds from the European Financial Stability Facility.

Tonight, the heads of state of the euro zone have to agree on concrete action to implement such measures. Immediate action will prevent the spreading of the crisis.

The leaders of the EU countries also supported the legitimating of the regular Euro Summit meetings and the proposal to ensure the coordination of the EU budget surveillance and economic policy via a newly adopted economic governance package.

These decisions, the President said, is the first step towards a quicker solution of euro zone issues.

According to Dalia Grybauskaitė, the ongoing processes in the euro zone and the protracted debt crisis will also affect Lithuania's economy, therefore we should strictly comply with the fiscal discipline obligations and, in view of possible risks, demonstrate responsibility when forming the state budget for 2012.

Press Service of the President