Greek fiscal crisis dominates EU summit

BRUSSELS, Feb. 11 (Xinhua) -- The first summit of the European Union (EU) called by the bloc's President Herman Van Rompuy ended here on Thursday, dominated by Greece's fiscal crisis instead of an economic blueprint as originally planned.

Greece's Prime Minister George Papandreou talks to  the media after the informal summit of the European  Union (EU) in Brussels, capital of Belgium, Feb. 11,  2010. The first EU summit called by the bloc's first  full-time President Herman Van Rompuy concluded here  on Thursday afternoon, showing clear political  support for debt-laden Greece.  (Xinhua/Thierry Monasse)

At a press conference held after the summit, Van Rompuy said that the discussion of EU 2020 Strategy has been put to the background, while much of the time was devoted to Greece's fiscal crisis.

With rising unemployment, an aging population and soaring budget deficits, the EU informal summit was originally planned to draw an economic blueprint to replace the current Lisbon Strategy which is due to expire in 2010.

But as Van Rompuy said that "events have decided otherwise," the EU 2020 Strategy was not fully discussed at the summit.

"It would be foolish to neglect a long term strategy, but it would be even more foolish and irresponsible to neglect the short term," he said.

Van Rompuy read a statement concerning Greece earlier during the summit, pledging "fully support" for the efforts of the Greek government and the commitments it made to reduce its budget deficit.

The Greek government submitted to the European Commission its stability program on January 15, pledging to keep its budget deficit below 3 percent of its Gross Domestic Product (GDP) in 2012.

Van Rompuy said in the statement that euro area member states will "take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole."

Despite speculation that a rescue plan would be announced for Greece, the statement did not promise any financial aid to the country, saying "the Greek government has not requested any financial support."

Jose Barroso, head of the European Union, stressed at the press conference that the Greek crisis would be dealt with in a dual approach, which means the EU member states show its solidarity by taking "determined and coordinated action" and Greek bears its responsibility to carry out the stability program it submitted in mid-January.

As to questions that the pledge of political support may not be enough to allay fears of investors, Barroso told reporters that it was still too early to judge the effects of "the clear political will" showed by the EU leaders.

As far as the informal summit was concerned, Barroso said that political support was "proper" and more formal decision should be taken later by proper institutions.

He pointed out that EU finance ministers will meet on February 16 for a monthly meeting, which is expected to discuss Greece's crisis.