February 1, 2012
European Union President Herman Van Rompuy said the bloc has reached a “turning point” in tackling the two-year-old debt crisis and urged further fiscal austerity to bolster investors’ confidence in the region.
Van Rompuy said “substantially” lower yields on Italian and Spanish bonds relative to benchmark German debt compared with several months ago signal that the euro area’s strategy for overcoming the Greece-triggered troubles and preserving the euro is paying off. He also referred to lower Irish yields.
“There is a positive reversal,” he told the European Parliament today in Brussels. “Is there a turning point? Yes. And I hope that we can continue along that line.”