Sharon Bowles MEP - plenary speech on the outcome of the Eurozone summit
"Presidents, thank you. As ever, we await details. Concerning the EFSF, the credit-enhancement option has similarity to mortgage and US department guarantees whilst the SPV option has similarities with known structured products. However, neither has been tested on the markets on this scale and so there will be challenges to meet in deployment.
"The SPV fund needs to be found at reasonable cost and then we will have a window to get the growth package working and sort out the debt overhang or we will find ourselves facing similar problems again.
"Bank recapitalisation and, still missing, crisis resolution is overdue, in part, because of political weakness and previous denials of the situation. In consequence, tax payers will now bear more of the cost.
"Finally, overall, we still have to find a solution for the fact that growth was built on debt for too long but the solution is not more of the same."
ENDS