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Pröll on economic status quo, "thunder and lightning are over"

Published: July 12, 2010; 00:00 · (Vindobona)

The EU has demonstrated that "it is able to act in one of the worst crises, even if there were some mistakes," says Austrian Finance Minister Josef Pröll.

Pröll on economic status quo, "thunder and lightning are over" / Picture: © Wikipedia / Tsui

Nevertheless, he urges caution.

Finance Minister Josef Pröll will not prejudge the results of stress tests for European banks, but "Austria's banks will certainly be evaluated in an ordinary measure".

At the meeting on Tuesday morning there will be a "very controversial" discussion on the topic of Financial Supervision. The Austrian position is an ambitious one. The Belgian proposal was a viable option.

EU able to act despite “oops”

Addressing the situation of the economy Pröll made a comparison with the weather. In view of the "hot summer weather," one must say that the "storm clouds have emptied, thunder and lightning are over, but the sky is not completely clear yet. Caution should be exercised. In any event, the EU certainly proved that they are "able to act, with some diversion but united in a clear direction." “I would not blow off the crisis, but we should worry about working to build for the future."

From the Task Force the Minister of Finance expects an intermediate result. The issue of insolvency procedures for highly indebted countries is an issue, "but not a priority". However the question of an orderly resolution of national government issues will remain. Concerning rescue measures some points will have to be clarified with Slovakia. But he was optimistic that the new Slovak Finance Minister understands the gravity of the situation and will sign the agreement in the coming days.