ING Group CEO comments on European Summit

Jan Hommen, CEO ING Group, comments on the outcome of the European Summit of 26 October 2011:

“I am pleased to learn that the European government leaders have taken such important steps. The eurozone is of crucial importance for Dutch prosperity, so this decision is very good for the Netherlands, for Dutch consumers, and also for our customers.

The arrangements will, of course, have to be worked out in more detail. When this is done successfully, the measures hold out prospects of a more structural solution for Greece, the entire European economy and the financial markets.

Key to its success is that the European Union and its Member States now live up to their promises. In this respect, I particularly think of the financial discipline that some member states will now have to show. Moreover, it’s important that the authorities decide in the short term on how the EFSF (European Financial Stability Fund, or the general rescue fund for eurozone governments), can be deployed optimally.

One of the important proposals concerns a larger contribution by the private sector to reduce Greek debt. The proposal to reduce the government bonds by 50% on a voluntary basis will have to be specified in more detail in the coming period. Wherever possible, ING will be part of this process. When all details are known, we will decide how we will contribute financially.

The role of the financial industry is of key importance in this respect. Banks particularly are the fuel of the economy’s motor. Solid capitalisation is of utmost importance for trust in banks. It is, therefore, satisfying to learn that yesterday it turned out that Dutch banks have sufficient capital, even when we include the haircut on Southern-European government bonds. ING included.”