The two major topics of discussion at the Ecofin meeting in Cyprus were the potential 'full bailout' for Spain and the review of the Greek bailout programme, it was revealed at a press conference featuring many of the big beasts of the European economic scene.

Regarding the latter, Eurogroup President Jean-Claude Juncker asked the 'Troika' - the European Central Bank (ECB), International Monetary Fund (IMF) and the European Commission (EC) - to continue negotiating with Greece. He said that further decisions may not arrive until November and doubted that the 'Troika's' report would be ready before early October. However, he ruled out the possibility of Greece exiting the euro.

In remarks about Spain, Juncker said that Spain assured that deficit targets were within reach and would be met with additional measures if needed. He added that Spain would announce a national program of structural reforms by the end of this month.

European Commissioner Olli Rehn specified that Spain's reform plan will be based on European Union recommendations with clear commitments and a precise schedule.

International Monetary Fund Director Christine Lagarde took advantage of the occasion to deny rumours that the IMF and the ECB were negotiating a bailout for Spain. She also said that she was impressed with the implementation of austerity measures in Ireland and Portugal.

Klaus Regling, head of the European Stability Mechanism (ESM), expressed confidence that ESM would be a successful replacement to the temporary European Financial Stability Fund, which until then would continue to work on Ireland and Portugal's bailout programmes.

ECB President Mario Draghi reiterated the "strict and effective" conditionality of the ECB's bond purchase plan but pointed out that normal conditions were returning to the debt market.

SC

Related share prices