HIGHLIGHTS-Comments from meeting of EU finance ministers

BRUSSELS Jan 24 (Reuters) - EU finance ministers and officials met on Tuesday to discuss a new treaty which aims to tighten fiscal discipline in the euro zone, as well as other issues in the sovereign debt crisis facing some of the 27 members of the European Union.

Following are comments after the end of the meeting:

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

ON FIREPOWER OF EFSF AND ESM BAILOUT FUNDS:

"The Commission has advocated reinforcement of the comprehensive financial firewall of the European Union, composed of the both the EFSF and the new ESM... as well as additional IMF resources. We see that it is important that we can move on with this matter and discuss it among ourselves and in parallel discuss it with our international partners."

ON GREEK REFORMS:

"The political party leaders are expected to commit to the second programme of the Greek government together with the EU and the IMF."

"It is clear and evident that we need convincing and firm commitments from all the leaders of the political forces... so that there is a broad political backing of the new, second programme for Greece."

ON GREEK DEBT TALKS:

"The talks between the private creditors ... and the Greek government have progressed well and they are very close to an agreement. It is certainly preferable to achieve an agreement in the coming days, preferable to do so in January rather than in February."

ON ECONOMIC OUTLOOK:

"A return to recovery and positive growth is likely to be postponed to the second half of this year."

ON SITUATION IN HUNGARY:

"Hungary should in the near future take action to meet its targets."

"It is essential that Hungary's fiscal policy is going to be on a sustainable path."

"In all there is ample time to take action and ensure that the fiscal targets are met in line with... the stability and growth pact."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

ON GREECE:

"Greece must implement the agreed measures and reforms. And of course all Greek parties must agree to the measures and a new programme, independently of the upcoming election.

"The contribution of private creditors is about reaching debt sustainability defined as 120 percent of GDP by 2020 as the heads of state and governments decided last year. In the current negotiations with private creditors we are still some way from that.

"Of course it is clear the IMF has to be part of a second package for Greece and so the talks will be continued in the next days on that basis.

"The (EU-IMF) troika sometimes has the impression that not everything agreed in the first programme has been implemented. We told Greece clearly that what has not been implemented yet must be implemented. It strengthens the confidence that what is agreed is implemented.

"Without the commitment of all (parties) and without assurance that independently of the outcome of elections the commitment is valid, it would be irresponsible for me as finance minister to sign."

ON TALKS ON PRIVATE SECTOR INVOLVEMENT IN GREECE:

"As long as we do not have debt sustainability, we do not have a new programme.

"That (people saying this is my last offer) happens in every bazaar. You do not need to be impressed by that. At least I do not. I am a good negotiator but that does not intimidate me."

ON EFSF AFTER S&P DOWNGRADE:

"(EFSF CEO) Klaus Regling said that the EFSF was fully able to act and anyway, the low reaction on capital markets show that we reacted properly with certain calmness. The most important was that we decided to get the ESM into place as quickly as possible."

ON ESM PERMANENT BAILOUT FUND:

"It will be a lot more trustworthy because of course nothing convinces investors as much as when the euro zone member states have paid capital into a stabilisation mechanism.

"We have the option in the treaty to pay in tranches more quickly but the head of the Eurogroup said it is clear all countries would have to agree to it. That may be a topic at the meeting of heads of state and government. In any case, we are ready to do it and we would welcome it if payments would be made more quickly.

"The upper limit has been set at 500 billion euros, that is no surprise. You know the heads of state and government will check that again in March but the EFSF is fully capable of acting and so is the ESM."

Two tranches of the five that were initially planned would be useful this year.

ON "FISCAL COMPACT" TREATY:

"We are very confident that we will decide the fiscal compact much quicker than the summit in December had planned, when it set March as a timeline.

"There must be a tight link between the fiscal compact and the ESM treaty as that is exactly where solidity and solidarity come together, two sides of the same coin... That is sorted. In terms of national debt brakes, it is about a very concrete design, anchoring them in the national legal systems and a control of that by the European Court of Justice, also with the possibility of imposing fines.

"The agreement should be transposed into EU law as quickly as possible. I use every opportunity to convince my British colleague."

ON THE OUTLOOK:

"We are not over the hill but we have reason to feel confirmed in the path we have taken. Reason to be confident we are...solving the problems step by step, just like the chancellor keeps saying.

"The more the rest of the world... sees that we are implementing what is agreed and not just announcing things, the more we win back trust."

Following are comments from earlier in Tuesday, before the talks began:

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

ON MONDAY'S MEETING OF EURO ZONE FINANCE MINISTERS:

"We made good progress but it's decisive we finished negotiations on the ESM yesterday."

ON PROGRESS TO SOLVE THE EURO ZONE CRISIS:

"We're not over the hill but the auctions in the first weeks of the year of Italian, Spanish and other countries' debt show that we have reason to be confident that we're not just on the right path but that we'll be continuing on this path successfully this year."

ON THE FISCAL COMPACT:

"The goal remains that one day in the not too far future we can put it into treaty law."

GREEK FINANCE MINISTER EVANGELOS VENIZELOS

ON PRIVATE SECTOR PARTICIPATION IN A GREEK BAILOUT:

"We have the green light from the Eurogroup to close the deal with the private sector in the next few days."

DUTCH FINANCE MINISTER JAN KEES DE JAGER

ON GREECE'S FINANCIAL TROUBLES AND THE BAILOUT PLAN:

"We have to wait. Obviously Greece and the banks have to do more in order to reach a sustainable debt level. A sustainable debt level is a precondition for the next programme."

AUSTRIAN FINANCE MINISTER MARIA FEKTER

ON THE GREEK POLITICAL PROCESS:

"We will only be able to finalise (the bailout plan) positively when the governing party and the other parties agree."

ON GREECE'S FISCAL PROGRESS:

"They have agreed on measures but expenditure has not really decreased. We are not satisfied ... The political level in Greece must know that we expect them to do more."

ON THE WIDER GREEK ECONOMY:

"I am sceptical, however, with regards to the implementation of reforms that should bring growth in Greece."

ON PRIVATE SECTOR PARTICIPATION IN THE BAILOUT:

"I expect the private sector will certainly make a significant contribution."

ON THE IDEA OF THE EFSF FUNCTIONING ALONGSIDE THE ESM:

"I think it would be possible to reach consensus on that." (Reporting by Annika Breidthardt, John O'Donnell, Robin Emmott, Ben Deighton and Sebastian Moffett)