Highlights: EU's Barroso and Rehn on new economic governance

Wed Nov 23, 2011 8:20am EST
 
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BRUSSELS (Reuters) - The European Commission proposed on Wednesday new, intrusive laws to make sure budgets of euro zone countries do not break EU rules and that their borrowing falls, which could lead to joint debt issuance in the future.

Following are comments from the Commission on its plans:

EUROPEAN COMMISSION PRESIDENT JOSE MANUEL BARROSO

ON ROLE OF EUROPEAN CENTRAL BANK:

"Reality is of course the teacher, but in the European Union we are a community based on the rule of law. We cannot go against the rules of law and our own principles. And the ECB has to act in a framework of the treaty.

"As you know, we fully respect the independence of the ECB. We believe it is critically important for the credibility not only of the ECB, but also of the euro and the euro area, and we are confident the ECB will take all the necessary measures to guarantee, of course, not only price stability but also financial stability. As they have been doing."

ON JOINTLY ISSUED EURO BONDS:

"We are launching the debate. At this moment, the Commission has not yet decided on the preferred approach. We believe it is better to put those different options, in what I believe is a very objective way, based on sound analysis, to (a) public consultation, including of course all our member states, but also the citizens of Europe, the experts (and) the different elements of our civil society."

ON INTENTION OF JOINTLY ISSUED BONDS:   Continued...