Van Rompuy: bewondering voor Portugese inspanningen om financiën op orde te krijgen (en)
Statement by Herman Van Rompuy i President of the European Council following his meeting with Pedro Passos Coelho i Prime Minister of Portugal
Boa tarde a todos (Good afternoon to all)
Today, after meeting President Cavaco Silva, Prime Minister Passos Coelho and I had a very constructive meeting, mainly focused on the economic situation in Portugal and the euro area at large.
I expressed my full support and deep admiration for the efforts Portugal and its citizens are undertaking.
The new government, and Prime Minister Passos Coelho in particular, enjoys a very strong popular mandate for change. Its programme of reforms for the next 4 years goes to the heart of the issues in Portugal. The fact that 85% of the deputies in the National Assembly represent parties that have signed up to the reforms is a proof of maturity of the Portuguese people and leaders. I want to pay a special tribute to that. This is what matters to me, not so much what rating agencies may say.
I have no doubt that with effort, time and support, Portugal will turn the corner. More than once in the recent past the Portuguese people have demonstrated their resilience and their capacity to overcome difficulties. No doubt this time it will be the same again.
Some of those reforms are unpopular; in Portugal and elsewhere; I'm fully aware of it. Yet they are necessary, and not just for the sake of cutting deficits, but in order to preserve our social models, to be able to guarantee our welfare and jobs for our children. It is to save the welfare state, not to undermine it.
Those reforms are needed not only because of the stability of the eurozone but for and foremost for national reasons, in order to preserve the future.
The best way out of the crisis and to fight unemployment is to raise economic growth by regaining competitiveness. And competitiveness is more than cutting costs and wages. It is also about better services, better qualified people, and a more attractive environment for firms to invest and innovate.
The immediate priority is to ensure the full implementation of the measures in the government's programme. This is key to restore investor's confidence and Portugal's self- assurance. And that's why my message today is to encourage the Government and the Portuguese people to continue with determination and unity in the path for change.
This crisis has revealed how interdependent the countries in the eurozone are. But at the same time it is extremely important to differentiate across countries. Each country is different, and the challenges faced by Portugal are not the same as those faced by Greece.
We also discussed the overall situation in the euro area. I am fully aware of the current tensions in the debt markets, but let me be very clear that there is a very strong commitment at the highest level to do whatever is necessary to safeguard financial stability.
Proposals of the Eurogroup on measures that will resist contagion risk in the euro area are urgently needed.
I am in close contact with the Presidents of the Commission, the European Central Bank and the Eurogroup.
I have not decided on a summit of the eurozone but I do not exclude it.
In the difficult time we are facing, we tend to forget that the euro is a stable and sound currency with strong fundamentals compared to other currencies.
The average public deficit in the Eurozone is lower than in the US, the UK and Japan. The overall level of public debt is also lower. Inflation has been below 2 percent for more than
a decade.
Most importantly, the economic recovery in the Eurozone as a whole is quite good, with forecasts of overall economic growth close to 2 percent in 2011 and 2012. This helps Portugal come back to higher growth rates too.
Let me end by saying once more that to cope with the crisis this country can build on the strengths it has already shown in good times as in bad times: the spirit of entrepreneurship, resilience and courage. No doubt it will be the same again.
Muito Obrigado. (Thank you).