HIGHLIGHTS-EU finance ministers' meeting

BRUSSELS, March 16 (Reuters) - Following are comments by finance ministers of the 27 European Union states in connection with their meeting in Brussels on Tuesday at which the Greek crisis was top of the agenda.

GREEK FINANCE MINISTER GEORGE PAPACONSTANTINOU

On possible European monetary fund:

"On the European monetary fund, this is, of course, an interesting idea but let's be clear that this is not an idea which has an immediate implementation possibility. This is something that is medium-term. It is something that has been put on the table and merits debate but this will not solve or address problems which Greece or other countries may face in the immediate future." No short cuts: "From the very beginning, we have been very clear. There are no short cuts to this affair."

"We, the new government, unfortunately have to deal with a very difficult fiscal situation and with a complete loss of credibility internationally both with our European partners and financial markets and we have said that this will take time and a lot of effort."

"Even the potential support mechanism is not seen as a short-cut. There is no short-cut here."

"The only way is for us to implement fully the Stability and Growth Programme as has been described and as has been put on the table."

"So if there is some frustration on our part, it is that we have to carry the burden of somebody else's mistakes ... We are doing our best to address what was a very difficult situation."

SPAIN ECONOMY MINISTER ELENA SALGADO

On possible aid for Greece:

"It will be decided by the European Council when the time comes, if and when Greece were to ask for such (aid)."

EU MONETARY AFFAIRS COMMISSIONER OLLI REHN

On Greece:

"These decisions to bring the deficit to the 4 percent target are already in force, they have been decided and enacted."

"They are based on a more realistic assumption of economic growth than the original macroeconomic scenarios of the Greek government."

"You are right --- these scenarios and measures are based on a projection based on 2 percent negative growth this year."

"Greece is now on track to achieve 4 percent deficit reduction in 2010."

"We will continue to monitor developments in Greece, and Greece will present its next report by mid-May which will deal with medium-term budget projections to 2012."

"In May the Ecofin will have to return to the situation in Greece."

GREEK FINANCE MINISTER GEORGE PAPACONSTANTINOU

On idea of aid from countries in surplus:

"We are in a common currency area and it is clear that in a common currency area, persistent, huge divergences in terms of competitiveness between different member countries are not viable."

"Just as it is not viable for Greece to continue to lose competitiveness over the long run and running a persistently very high deficit."

"Similarly, it would be helpful if those countries that are running surpluses are the engine in a certain sense and help the entire euro zone get out of the difficult situation that it is (in)."

On improved borrowing costs foreseen: "It (borrowing cost) will go down. It will be very hard to live with 6.3 on all the remaining borrowing that we have for this year or obviously for next year's borrowing requirements.

"However, that's a theoretical question because we will not live with 6.3. The borrowing costs of the republic will continue to improve."

On aid mechanisms:

"In the last few weeks, there has been a technical working group working on alternative scenarios. Some of them were discussed yesterday, the positions of different countries were put on the table."

"It is very important that we are now moving forward with the set-up of the mechanism, which is of use, if necessary."

"I want to reiterate: Greece has not requested financial help from its euro zone partners."

"What we have always asked for is political support in order to be able to continue to have access to markets at reasonable borrowing rates."

On high borrowing costs:

"The borrowing costs that we had last time on the 10-year issue were less than those we had the previous time we went onto the market, roughly 50 basis points on the spread lower."

"Obviously, the total cost of borrowing on a 10-year bond is higher than the total cost of borrowing on a five-year bond so we are on the right track.

"The market is reacting positively and has been to the measures that we have taken. It is a matter of time."

"It's clear that we are not happy to be paying the kind of markups and spreads that we are paying at the moment but as we have stated all along, it is a question of rebuilding credibility."

"And it is very clear now that this credibility is being rebuilt as reflected also in the financial markets."

On Greek budgetary measures:

"We are particularly pleased that these efforts (by Greece) have been recognised yesterday at the Eurogroup and today at the Ecofin in a very public and vocal manner."

"It has been clear from the beginning that any measures taken would be to safeguard the stability of the euro and the euro zone. This is exactly what the heads of state and government had in mind when they made the announcement at the end of the last European Council."

"It so happens, however, that the two coincide, in other words a reduction of borrowing costs also helps the stability of the euro, will normalise the lending and borrowing conditions and will be very helpful to get rid of the current turbulence that we are seeing in international markets."

SWEDISH FINANCE MINISTER ANDERS BORG

"We have a situation which is much better than one month ago. There are open questions about implementation. They (the Greek government) have taken steps in the right direction. They have taken the right decisions on taxation and they deserve support now."

SPANISH FINANCE MINISTER ELENA SALGADO

"Greece for the moment does not need any help. They have not asked for any money."

She said finance ministers had agreed on an instrument to help Greece if needed.

BELGIAN FINANCE MINISTER DIDIER REYNDERS

"Belgium is ready to participate in an aid scheme for Greece. It could be guarantees, or loans, we will see. It will be on a voluntary basis."