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“Eurozone On Stable Ground”
Austria´s Minister of Finance Maria Fekter is optimistic. Spain, Portugal and Ireland are making substantial progress. However, the crisis is not over yet, she notes.
“Eurozone On Stable Ground” / Picture: © Vindobona.org
According to Fekter, the downgrade of ESM was not due to the lower rating of France. However, Fekter thinks that the downgrade was not comprehensible. Last week, France lost its AAA-rating. Fekter emphasizes that the crisis does not aggravate. By contrast, there is a clear upward trend, the Minister said in an interview with the Austrian news magazine “Österreich”.
“Spain´s banks do not need as much money as we feared. Portugal and Ireland recover more and more.” Austria´s Finance Minister argues. The crisis would not be over yet, but the Eurozone stands on a solid ground now, Fekter says.
Regarding Austria, the economy will recover in 2013, Fekter forecasts. Only the fourth quarter was rather weak, she said. “I think that we will return to healthy growth again.” According to her, investments in the industrial sector are growing again. Next year, Fekter wants to work on a tax reform concept. “But I am very cautious with new expenses. We have no guarantee that the economy will return to higher growth rates in spring.”
The downgrade of ESM would be regrettable, Fekter stated. However, the interest rates will not increase. “This would concern those countries which need help from ESM.” Fekter argues.