BELGIUM: Euro zone finance ministers appoint Dutch Finance Minister Jeroen Dijsselbloem as new chairman of the Eurogroup

Record ID: 644420

  • Title: BELGIUM: Euro zone finance ministers appoint Dutch Finance Minister Jeroen Dijsselbloem as new chairman of the Eurogroup
  • Date: 22nd January 2013
  • Summary: BRUSSELS, BELGIUM (JANUARY 22, 2013) (REUTERS) FINAL BRIEFING
  • Embargoed: 6th February 2013 12:00
  • Keywords:
  • Location: Belgium
  • Country: Belgium
  • Topics: European Union,Economy,Politics
  • Reuters ID: LVADH13H1AD1K12YOZOW5GICUMN2
  • Story Text: Dutch Finance Minister Jeroen Dijsselbloem was appointed the new chairman of euro zone finance ministers on Monday (January 21).
    After the meeting, outgoing Eurogroup chairman Luxembourg's Prime Minister Jean-Claude Juncker said he was convinced that forty-six-year-old Dijsselbloem was fit for the job, despite being relatively new on the job as finance minister.
    "We look different and in all probability our way of running things and our styles will be quite different too. Above all that I am convinced that Jeroen embodies all the qualities which will enable him to step adequately into this function. It is a very burdensome responsibility", Juncker said.
    The Dutch minister, who took his national post three months ago, said the euro zone should continue with reforms and fiscal consolidation that have pleased investors.
    "The job isn't done yet. We still have a lot of work to do to strengthen trust, to help create sustainable growth and increase employment. We need to keep the momentum that we have now, and work with it. We need to follow up on our decisions, to live up to promises we have made and take further steps where needed," said Dijsselbloem.
    Dijsselbloem was confirmed in the post at a meeting of the Eurogroup of 17 euro zone ministers, but did not receive unanimous support, with Spain refusing to give its backing.
    "My Spanish colleague hasn't elaborated on the reasons for that, so you have to ask him what the reasons are, but he has said to me which I appreciate very much, that of course now that I am the elected next president of the Eurogroup, that he will work with me in a very professional and positive way," said Dijsselbloem.
    Juncker said that a lack of unanimity was of no great relevance.
    "I don't think that this will lead to dramatic consequences," said Juncker.
    Juncker also reported on the deliberations of the euro group ministers regarding the debt-ridden banking sector of Cyprus.
    "We also assured that Cyprus' short-term financing needs are covered. On this basis, we considered that a targeting agreement on a programme after the upcoming national elections in Cyprus would best facilitate national ownership. We expect therefore that final agreement on a programme could be reached as of March," he said.
    Addressing concerns that his appointment could deepen divisions between northern European countries which enjoy higher credit ratings and the south, where countries have to pay more to borrow, Dijsselbloem said fiscal discipline and financial help between euro zone countries were not mutually exclusive.
    "I believe that we have come into a phase that we have to work constructively together. And I for one will definitely try to build some bridges between the North and the South, the triple A's and the non-triple A's, the austerities and the non-austerities. Personally I think that austerity and balancing budgets is important for the future of all European countries," Dijsselbloem said.
    The Netherlands is one of only four euro zone countries to have retained the highest credit rating throughout the crisis and has been one of the hardliners, along with Germany and Finland on the need for tough austerity in countries benefiting from euro zone support - Greece, Ireland, Portugal and Spain.
    The Eurogroup is a powerful policymaking body key to dealing with the debt crisis.
    The appointment to chair the monthly meetings of the finance ministers from the 17 countries sharing the euro is for two-and-a-half years.
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