Comments by EU finance ministers, officials

Following are comments by EU finance ministers and other officials after talks in Brussels on Tuesday.

ITALIAN ECONOMY MINISTER GIULIO TREMONTI ON EURO ZONE OR E-BOND PROPOSAL WITH JEAN-CLAUDE JUNCKER

I am positive and optimistic on the proposal just as Juncker is... It is something that comes from the past and will have a future.

On the possibility that the euro area bond proposal will be discussed at the EU summit in December he said: let's see.

It is a proposal for a joint EU action against the crisis... to face the debt crisis with country-by-country measures is not enough, we need a joint European solution.

I don't think Treaty changes are needed to issue joint euro zone bonds.

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE ON EURO ZONE BONDS:

We cannot simply redistribute the interest-rate risk without a change to the fundamental rules of the European Stability and Growth Pact.

And the introduction of euro bonds, according to market expectations as well, would do this. Then we would have no incentive for fiscal solidity.

AUSTRIAN FINANCE MINISTER JOSEF PROELL ON EURO ZONE BONDS:

I'm very critical of the euro bond idea. We have enough instruments in place to stabilize countries. Look at Ireland. Ireland shows that it's enough.

I don't think much of the idea of euro bonds. It cannot result in countries that manage their budgets well and make painful cuts to their budgets pay, because the tendency with euro bonds is to make it more expensive for them to borrow.

The introduction of a euro bond would take away the pressure on countries that were not prepared to reduce their deficit. How should this euro bond work?

EU ECONOMIC & MONETARY AFFAIRS COMMISSIONER OLLI REHN ON THE PREVIOUS ROUND OF STRESS TESTS FOR BANKS:

I would very strongly defend the conduct and results of the bank stress tests.

They were done with a common methodology which was rigorous and in line with capital requirements, as well as including both a baseline scenario and an adverse scenario and in fact this adverse scenario is now, in the light of today's information, more negative than it should be on the basis of the economic growth projections of today.

ON A NEW ROUND OF BANK STRESS TESTS:

One of the elements is the preparation of a new round of even more rigorous and even more comprehensive bank stress tests which will start from February next year and will be based on new financial architecture.

The commission's view is that we need to opt for fullest possible transparency when conducting the bank stress tests. Currently the next round of stress tests (is) under preparation and we will shortly have more specific methodology agreed on this.

One of the lessons learnt is that we will need to have a liquidity assessment in these stress tests next time around.

ON SITUATION IN PORTUGAL: Portugal also recently passed an ambitious budget for next year and I expect this to be followed by the specification of consolidation measures for next year and by decisions to improve the overall competitiveness of the economy.

Portugal has indeed just very recently taken a very important decision on the budget for next year in order to meet targets of a 4.6 percent fiscal deficit in 2011.

Portugal has last week also taken a decision on a new budget law that will specify the medium-term budgetary objectives and introduce expenditure ceilings as well as a new fiscal rules, which are fully in line with best practices in Europe.

These are very important steps. Currently the Portuguese government is preparing its next steps and in our view it is important that the Portuguese government should shortly substantiate the consolidation measures for next year and also present its initiative for growth which it is currently preparing.

We are in communication with the Portuguese government and we support their work concerning structural reforms and other issues in order to enhance growth in the Portuguese economy.