Differing views on the road out of the debt crisis

The bailout programmes for Portugal and Greece, the benefits and drawbacks of debt default and the need for radically improved Eurozone crisis management were the main issues aired at this afternoon's debate on the EU's debt crisis between MEPs and Commission and Council representatives.

Various MEPs called for a new, more ambitious management strategy to deal with Europe's debt problems.  Furthermore, the volatile atmosphere surrounding EU economies meant that clarity was of the essence and that "denied secret meetings" undermined this completely.  MEPs also repeatedly underlined the imperative of tackling the weak banking sector without which, many said, the debt crisis could not be solved. 

Greece and Portugal dominated the debate with a number of MEPs from these countries taking the floor to call for continued assistance from other Member States and to criticise the commission for the punitive interest rates being tied to their bailout programmes.  Other MEPs, however, described the burden being placed on taxpayers from other countries as immoral. 

The House was also particularly split on the benefits of restructuring debt, with some arguing that even speculation on this was very negative and others saying that this would be the only way out for a country like Greece.  Commissioner Olli Rehn spent most of his closing remarks warning against such defaults saying this would lead to a "massive credit crunch".

During the debate news arrived that some of the main Finnish parties have decided to support the Portuguese bailout programme.

You can watch the recording of the debate via the Video on Demand service (link below).