Bank of Portugal Chief Says EMU Summit Decision Very Positive

LISBON (MNI) – European Central Bank Governing Council member
Carlos Costa, who is Governor of the Bank of Portugal, said Friday that
the decisions taken at the EMU Summit are very positive and show that
Greece’s problems will be overcome.

Speaking on the sidelines of a conference on fiscal policy, Costa
said the decisions taken by Eurozone leaders show a climate of
tranquillity, serenity and stability. And it means member states will
their honor obligations, he said.

Costa also said that the decisions made in regards to Greece do not
apply to Portugal and Ireland because in those countries there is no
restructuring of debt.

He declined comment on whether Portugal’s banks will participate in
the private sector contribution to Greece.

There is no reason to believe Portugal won’t follow the path to
recovery, Costa said.

During the seminar, Costa said that the creation of an independent
public finances council, which was announced by the Portuguese Finance
Minister last week, is instrumental is strengthening the credibility of
the country.

In a short speech given at the close of the event, Costa said that
the new council will generate confidence in Portugal’s fiscal
management.

Costa also said it is important that the independent council of
public finances does not duplicate what other institutions do. It must
ensure sustainability and legitimacy, he said.

He added that the council must be owned by Portuguese and created
by Portuguese and noted that the first countries to establish their own
independent council of public finances are on the right track.

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