Debating the current economic crisis in the Eurozone with Italian Prime Minister, Mario Monti, today. Guy Verhofstadt, ALDE group leader said:

"Greece should look at what is happening in Italy. The type of structural reforms, overhaul of the public sector and changes to the political system being undertaken by the Monti Government are also necessary in Athens. "

"Even today, Italy is paying three times more than Germany in interest on its government borrowing whilst Greece is paying 16 times more, despite now having a primary budget deficit under 3%. No matter what painful but necessary reforms these countries take, if nothing is done to reduce their crippling debt payments the problem will not go away."

"EU leaders must bite the bullet and agree to set up a debt redemption fund, as proposed by the German Economic Council with a substantial pot of €2.3 trillion that mutualises all debt over 60% and encourages repayment at sustainable levels. The advantages are that it is a temporary facility and thus complies with both the EU Treaty and German Constitutional Court and avoids moral hazard which can be created if debt is simply written off."

"In the longer term, Europe may well still have to consider stability bonds to bring real discipline and solidarity to the monetary union."