* Rehn says ECB forecasts should spur swift decisions
* Sees start of economic recovery in 2013
(Adds quotes, background)
HELSINKI Dec 7 The EU's top economics official,
Olli Rehn, said on Friday that it was important that European
leaders meeting in Brussels next week reach an agreement on
plans for pan-EU banking supervision.
European finance ministers and leaders meet later next week
to try to bridge their differences over how to supervise banks
around the European Union in the wake of the global financial
and euro zone debt crises.
"We have serious flaws, serious holes in European banking
supervision and we aim to fill those holes and prevent a similar
crisis from happening again," Rehn told reporters in Helsinki
after a parliament briefing.
He also said the European Central Bank's economic forecasts
on Thursday "should work as an alarm that now determined
decisions must be made both in member countries and in the euro
The European Central Bank's new staff projections on
Thursday put gross domestic product in a range of falling by 0.9
percent to growing just 0.3 percent in 2013, suggesting
contraction is far more likely than not.
"Recovery will be slower than previously forecast. Whether
the recovery will begin in the second or third quarter is
difficult to say, but it will begin next year," Rehn said,
though he added that the worst of the crisis was over.
He also said that Greece's programme and its bond buying
will be discussed by European finance ministers next week, but
declined to say what would be a target figure for Greece's bond
Last week Greece and its international lenders reached a
deal to lower the country's debt burden, which included a debt
buyback. The move is seen as central to put the near-bankrupt
country's debt back on a sustainable footing.
"We will review its impact on last week's decisions on
Greece during the weekend and early next week," he said.
(Reporting By Terhi Kinnunen, Writing by Jussi Rosendahl;
Editing by Hugh Lawson)