First if the program is undoubtedly ambitious it is also realistic

Recall of March 2010. Several weeks of intense consultations, telephone calls, endless meetings, day and night. The tension was greatest both in the Eurogroup as with our international partners. Yet it is the determination and solidarity prevailing among Europeans: "We are all in the same boat." Sometimes may 2010. The Eurogroup adopted a device joint eurozone-IMF support for the Greece conditioned to the resolute implementation of a credible adjustment programme aimed at cleaning up the Greek economy. This reaction is necessary to preserve the financial stability of the euro area as a whole and address the underlying imbalances of the Greece.

Today, August 2010. The first assessment of the implementation of the programme took place. The Greek authorities have shown their determination to take drastic and sometimes painful measures needed to reverse a situation which was not tenable. The results are encouraging. Budgetary consolidation is progressing according to the objectives of adjustment in total about 8 of GDP in 2010. Fiscal governance reform has progressed, particularly by combating tax evasion. There is progress in structural reforms including labour market, pensions or even environmental companies, certain reforms even took the advance on the schedule. In addition, the establishment of a new financial stability fund improves the resilience of the financial system.

In the longer term, the strict application of the measures adopted and, where appropriate, the achievement of the objectives (including in the implementation of the budget) will regain confidence and addressing imbalances. Structural reforms including the pursuit of liberalization and deregulation in many sectors, must be thorough to strengthen growth and employment and improve competitiveness. The ambitious program of adjustment of the Greece is the return of the macroeconomic and financial stability and strong and balanced growth in the medium term. Resolved implementation should strengthen its credibility and the confidence of citizens and investors.

I am aware that the Greek determination to carry out reforms not yet lifted all concerns about the debt restructuring. Yet I believe that these concerns are unfounded, and for a number of reasons that overlap.

First, if the program is undoubtedly ambitious, it is also realistic. Based on a macroeconomic scenario prudent (with a certain probability of growth), the dynamics of sustainable debt is an integral part of the strategy of budgetary adjustment of the program. Structural budget reforms will facilitate the achievement of the budgetary targets.

Secondly, the agenda of wider structural reform agenda should strengthen the Greece medium-term growth potential and, therefore, improve the sustainability of debt dynamics.

Third, those who advocate the restructuring of the Greek debt tend to underestimate its important economic and political cost. This cost would have a significant impact on the economy and financial system Greek together, as well as adverse effects throughout the euro area and the global economy.

Its political cost would extremely damaging, not only for the Greece but also for the euro area and the European Union as a whole. It would be a non-desired and not necessary, effect which can and should be avoided.

Strengthen credibility will certainly not happen in one day, but we now see signs of a gradual change in the perception of the Greece by the markets. I am satisfied that the perception of risk will improve over the adjustments, which should result in fine by a return to normal in terms of market access. More generally, the sovereign debt crisis, and the Greek crisis in particular, have updated the systemic weaknesses in the economic governance of the European Union. We must learn the lessons of this crisis to avoid new similar crises in the future.

The Commission has put forward ambitious proposals to improve economic governance, to strengthen preventive budgetary surveillance, to create a framework for resolution of emerging macroeconomic imbalances and, if prevention is not worked, to establish as a last resort a solid mechanism for resolution of crises. I count here in late September to lay a legislative package aimed at reforming the governance of the European Union. I am sure that the response to the crisis will improve the efficiency and soundness of the economic and Monetary Union and that the European Union will be strengthened.