Regling: Euro crisis over by 2014
The head of the European Financial Stability Fund (EFSF), Klaus Regling, has forecasted that Europe’s debt problem will be over by the end of 2014 and that there is no chance that the euro-zone will collapse.
Speaking to German newspaper, Der Spiegel, Mr. Regling also singled out Ireland, as one of the countries hardest hit by the crisis, for their durability and how well it has gotten back on its feet. He pointed to all euro-zone countries’ commitments to cut deficits as an indication that the euro will survive.
“One can justifiably expect the crisis to be over within two to three years. In all euro-zone countries the fundamentals are improving,” he said.
He also commented on the possibility on the fears that the euro-zone could collapse. He called on all countries to put in motion their savings plans and said that there was no chance of the euro-zone falling apart because all member countries, weak and strong alike, had a vested interest in the euro-zone’s survival.
The EFSF is a €440 billion fund to assist any countries that have been adversely affected by the economic downturn and has already bailed out Greece, Portugal and Ireland. It raises money on the markets then lends to countries needing help from the EU-IMF. All borrowings are guaranteed by the big European countries and the EFSF currently holds a AAA credit rating.