HIGHLIGHTS-EU sustains pressure on Greece to cut deficit

FROM BEFORE MEETING

JUNCKER

On reports of Greece's use of swaps to mask size of debt:

"We will ask questions about that to the Greek finance minister. My impression is that this a phenomenon limited to 2001."

Generally on Greece:

"If it appears in mid-March that they are not on track, we will ask for additional measures."

Asked if there would be a rescue plan for Greece: "This depends on how far Greece agrees to additional measures in case those are warranted."

"I don't think that this theory, this absurd theory, of expelling Greece from the euro area has (any) chance to be taken seriously into consideration by finance ministers tonight."

Asked whether Luxembourg would provide suppport to Greece if needed, he said: "Yes."

"We will have a discussion on the basis of what the European Council agreed upon and there it is clearly mentioned that Greece has to make sure that it cuts it budget deficit for 2010 by four percent and we have to check if this is possible or not and it will all depend on the answers given to that crucial question."

"The Eurogroup (of finance ministers from the euro zone) will work on the basis of the declaration of the European Council.

"We support efforts of the Greek government to achieve objectives of the stability programme, especially the target of a four percent reduction of the public-sector deficit.

"In that context, we expect that in due course the Greek government will take necessary additional measures to reach that target. Our view is that risks related to the implementation and macro-economy and markets are materialising.

"And therefore there is a clear case for additional measures."

PROELL

On reports of Greece's use of swaps to mask debts:

"All the suspicions there are, suspicions of faked accounting... must be cleared up. We'll have to investigate.

"It cannot be allowed in the future that such situations allow the euro to come under international scrutiny."

On Greece's debt and deficit situation:

"There have been clear political signals from Europe that it is ready to help (Greece) at the end of the day."

"We must all consolidate public finances. Each country must keep its own house in order.

"The Greek government must take care of its own house and then the question will be whether financial signals will be sent. But we're not there yet."

"It is now our duty in the euro zone to consider a toolbox of instruments, and how we in the future can avoid such incidents with a variety of instruments. This is an avenue that we should take now, irrespective of the Greek case."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

"We will look at the additional measures and evaluate them."

"We are listening to what the Greek government has to say, that is why we are here."

FINNISH FINANCE MINISTER JYRKI KATAINEN

"The only country that can help Greece is Greece itself."

He added that if some EU countries could help Greece, it would be bilaterally and not involve the EU as a whole.

GREEK FINANCE MINISTER GEORGE PAPACONSTANTINOU

"The biggest problem Greece faces is a credibility deficit. You lose credibility fast, you regain it slowly."

"The Greek pension system is not viable as it stands."

"My argument is yes, we are doing enough, yes will be able to do it."

"We are trying to change the course of the Titanic, it cannot be done in a day."

"If additional fiscal measures are needed, we will take them."

"Today it is Greece, tomorrow it can be another country. Any European country can be prey to speculative forces."

"We are beginning to show that step-by-step, we are following words with action."

"The kind of derivatives contracts reported by some newspapers were legal at that time. Greece was not the only country to use them."

"These kind of more exotic operations were completely legal. There were made illegal, we have not used them since then."

"I would certainly not pass judgements on opinion polls in Germany regarding Greece.

"I understand the frustration of German citizens. While I understand it, there were a number of news reports that went beyond what happened."

"We will do what it takes to bring the deficit down."

"This was a fiscal package over and above measures in the stability programme. We have measures that are there to compensate for potential slippages.

"If we announce new measures today, will that stop markets attacking Greece? My guess is what will stop markets attacking Greece is a further, more explict message that makes operational what has been decided last Thursday at the European Council."

SPANISH ECONOMY MINISTER ELENA SALGADO

Asked if the ministers will ask Greece to take additional measures to cut deficit: "This is something that has to be discussed tomorrow."

Asked if Portugal's central bank governor Vitor Constancio is the frontrunner for the job of European Central Bank vice president: "In Spain and Portugal we share the commitment to help the other country."