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Delo: Euro Rescue Package a Turning Point for the EU

Ljubljana, 11 May (STA) - Agreement on a EUR 750bn package designed to neutralise speculative attacks on any eurozone member has made it clear that after the Greek crisis, the EU cannot go on like it has so far, daily Delo comments on Tuesday.

The European Central Bank (ECB) made a huge leap forward by taking on an active role in tackling countries' debt crises, the daily says in "A New Dawn for the Euro".

But the early-morning decision carries another inexorable consequence: fiscal policies in the euro area will have to be brought on the same footing or, more precisely, a single fiscal policy controlled by Brussels will have to emerge.

One of the reasons for the crisis is that weaker countries took on massive debt in the shelter of the strong single currency, even at negative interest. There is only one way out of that: long-term restructuring of public finances.

Slovenia is no exception. Its external debt surged when the euro was strong and interest low. The one thing that is saving us from being in the company of PIGS is a low debt burden overall, the daily says in reference to financial markets' collective name for Portugal, Italy, Ireland, Greece and Spain.

In this sense the nearly EUR 400m that Slovenia will lend Greece is not a crisis tax, it is a guarantee that Slovenia will get help if it gets into trouble, the paper concludes.

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