"If you look at monetary policy and if you add a cheap euro and oil prices good markets, all this creates a huge stimulus to the European Economic Area."
Greece continues to make headlines when talking about the economy européennea But the story does not end there. This is to regain growth and create jobs.
So to talk about anything that relates to the economy, I met the Vice President of the European Commission, responsible for growth, employment, competitiveness and investment, Jyrki Katainen.
Maithreyi Seetharaman, euronews:
How much European policies Flexible? In the case of Greece in particular?
Jyrki Katainen, Vice President of the European Commission:
There are few countries that can afford to stimulate their economies. But the best recovery, and that all Member States can currently do is to reform ... innovative reforms to enable the country to be more flexible ... when it comes to the labor market or when talking about the entrepreneurial environment. So flexibility and recovery mean that they should be prepared to reform our societies ... and many governments have undertaken.
Maithreyi Seetharaman, euronews:
Would you say that this is not the case of Greece? Or would you say that perhaps Europe is too slow to respond, and the meetings of the Eurogroup, the meetings of the troika lead nowhere.
Jyrki Katainen, Vice President of the European Commission:
Greece has made a lot of good things. If you look at the primary surplus is one of the most important in Europe. And economic growth is very strong. But then, after the election, the economic fundamentals have not changed, and the Eurogroup has made a start, and it will keep trying to find a solution that is acceptable to all 19 Member States (Eurogroup ). So you have to accept the fact that the economic situation in Greece has not changed, even if the government changed.
Maithreyi Seetharaman, euronews:
Do not you think it takes too much on the rope with Greece? Will do we not end up in the situation where we take too much time and goals become out of reach?
Jyrki Katainen, Vice President of the European Commission:
In terms of European decision-making, we will always fast. There are a few months, we said we were going to set up a new investment triangle, with the solidarity fund, deepening the single market and transparent projects, and continue. By spring, many pieces of the puzzle are in place. But when looking at the national reforms, it always takes time, because reforms must be rooted deep in society, it is not easy politically, so it always takes time.
Maithreyi Seetharaman, euronews:
Depending on your perspective, what is the right compromise for Greece, who held the road with other countries who look Syriza and who are worried about their own political situation?
Jyrki Katainen, Vice President of the European Commission:
Greece received help from taxpayers in other countries. And it is clear that Athens must continue pro-growth reforms. Today it is far too early to say what the final result. But the Commission is determined to help Greece. We must ensure that people are going to continue to buy their medicines and medical treatment if necessary. So we're on the side of the Greek people, and there are 19 states, eurozone members, 19 constituencies, 19 governments and parliaments must agree to contribute to this program and of course, the most important is that the Greek government has willingness to cooperate.
Maithreyi Seetharaman, euronews:
If the investment plan is based on growth in bond securities, why Greece can not at the same time issue such obligations?
Jyrki Katainen, Vice President of the European Commission:
The Greek authorities must ensure that confidence in the country continues to increase. This means they must show the courage to make reforms for growth. And they must take care of their fiscal policy, because otherwise no one will invest in Greece especially if uncertainty increases as it has done in recent weeks.
But for example, a new fund could finance projects, private sector projects in Greece. In addition, the fund was set up in order to leave more room for risk. But the environment and ambient confidence must be at a good level, otherwise no one will want to invest in Greece.
Maithreyi Seetharaman, euronews:
The investment plan is timely for a while, what feedback have you had investment community, is it realistic?
Jyrki Katainen, Vice President of the European Commission:
Well returns are very encouraging. First of all, we can put the plan in place quickly, everything should be in place by the end of June, and we can begin to increase lending to SMEs upstream. We do not yet know the projects for the moment ... and it depends on the private sector because the new background only fund of private investment and public-private partnerships. There were also questions ... like why we use such amount to trigger a leverage effect, but the question is based on the history of loans from the European Investment Bank. In fact 15 as a multiplier is a little below ordinary leverage of the EIB. So no one can put a date, but nevertheless, this is the best information we have at the moment. Obviously, we are interested in resources from outside Europe, and once everything is ready, I will be more than happy to go around the world.
Maithreyi Seetharaman, euronews:
Do you think the program of quantitative easing by the ECB, makes it easy to sell this investment plan?
Jyrki Katainen, Vice President of the European Commission:
This was very useful and stabilized the situation. If you look at monetary policy and if you add a cheap euro and oil prices good markets, all this creates a huge stimulus to the European Economic Area.
Maithreyi Seetharaman, euronews:
My last question, Mr. Katainen: what keeps you awake? Deflation, Greece, the lack of growth, the investment plan?
Jyrki Katainen, Vice President of the European Commission:
Let the investment plan, because it is so hard to establish. The deflationary spiral do not care at the moment. I work very hard on the investment plan, because it can make a difference. If you look at monetary policy and if you add a cheap euro and oil prices good markets, all this creates a huge stimulus to the European Economic Area.
Maithreyi Seetharaman, euronews:
Thank you very much Jyrki Katainen.
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