HIGHLIGHTS-Comments by European Union finance ministers

BRUSSELS, July 13 (Reuters) - The following are comments by European Union finance ministers and other officials meeting in Brussels on Tuesday.

EUROPEAN COMMISSION PRESIDENT JOSE MANUEL BARROSO

"Slovakia is a very responsible member of our common European Union. I expect that Slovakia will very shortly sign the formal agreement on the European Financial Stabilisation Facility to implement the commitment made by the previous government."

BELGIAN FINANCE MINISTER DIDIER REYNDERS

On stress tests:

"It's going to be coordinated in all member states, as well as indiviudually at the banks' initiative, and the national banking supervisors will oversee that with CEBS, publishing the consolidated version of the results.

"After that there will be broken-down publishing in member states, particularly in those that host particularly large group headquarters. We want this to be as broadly based as possible, involving the institutions with sovereign debt exposure.

"We want this to give as much credibiility to our banking institutions as possible as a result of this exercise.

"and also at stake will be an undertaking to take all necessary measures were they to require further consolidation of certain banking institutions, capital ratios and so on.

"Transparency is the most important thing.

"We have taken an agreement in Council about all the need to devote to transparency and such a process and now we have asked the EFC (economic and financial affairs committee) only to organise the details of the publication, but there is no problem about the choice, we want to go for the most important transparency in the publication on the different issues. And I have listened to the Tier 1, I have listened to the exposure to the sovereign debt issue -- we want to go to publication with the maximum transparency and we have asked the EFC to organise that. And so it's only a problem of coordination, to be sure that we are publishing at the same moment ... all the figures.

"We are going through a very transparent process without too much discussion... it's only technical work in the EFC."

On supervisory authorities:

"We've had contacts with parliament... and we took to Ecofin a new draft mandate which is based on a new set of texts for Ecofin to look at.

"I'm very pleased that we now have this basis for further discussion, and I hope the final discussions, with parliament. The aim is for final adoption... to take place as early as September.

"We need to start with supervision from January 1, 2011 with the new institutions. We have a new mandate to discuss tthis with parliament and we will start tomorrow.

"There'll be a task force meeting and eurogroup meeting on September 6, and an Ecofin on September 7, that will meet on the same ideas."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

On stress tests:

"We are confident that the tests being carried out will give a clear and accurate picture of the resilience of the European banking system."

"Of course the (European) Commission will not prejudge the results of the upcoming tests but we are confident that overall the European banking system is strong and resilient. Nevertheless in case any elements of vulnerability are identified, systems are in place to deal with them swiftly and properly."

"If the tests show any residual pocket of vulnerability which cannot be addressed via normal market financing, then the member states should have the necessary financial backstops in place. In other words, national funds for recapitalisation or national guarantees for recapitalisation purposes. I can say on the side of the Commission that we can take decisions quickly if necessary to preserve financial stability as we have done in the past."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

On budget stability measures:

"In a first step, we want to decide by October upon those reform measures that we can quickly implement ... to sustainably strenghten the European Stability and Growth Pact more, so the things that we can do without changing the treaty. There are proposals by the commission, Germany and other countries."

BRITISH FINANCE MINISTER GEORGE OSBORNE

"We made considerable progress on the issue of supervision... The Council now has a mandate which it will take to the parliament. Of course we are still in discussion with the parliament about a final agreement here..

"But the key UK requirement is that, yes, we create these agencies and that they are up and running by January (2011) and... because it's in the UK's interest, as owner of a great deal of europe's financial services, that there are cross-border arrangements.

"Despite the wishes of some that the banking authorities should be moved to Frankfurt, it will remain established in London."

ITALIAN ECONOMY MINISTER GIULIO TREMONTI

"The European Central Bank's strategic role has changed, it is no longer just guardian of the euro."

AUSTRIAN FINANCE MINISTER JOSEF PROELL

"There are still fundamental questions to clarify, the discussion is not over yet, there are certainly different positions but in my view it should be possible with good will and it is necessary ... The crisis has been going on for a long time now and we have been discussing for a long time and with great intensity the issue of financial supervision and the time for a decision has come in my opinion.

"We will await the results of the bank stress tests with patience -- the central bank has clear parameters and standards, I do not expect that there will be any turbulence, but rather that it can be shown the European banking system is robust and can also resist future crises."

GERMAN FINANCE MINISTER WOLFGANG SCHAEUBLE

"I think the presidency can pick up the negotiations again today in the trilogue with a new mandate. There are fewer points of contention now. I am actually confident that if we don't reach an agreement with the parliament today, then we will reach one over the course of the summer by September."

On sanctions:

"We brought our own proposals (into the discussion), so there is a quite a lot of overlap with most of the proposals of the (EU) commission ... The basic line is clear: these sanctions should provide such incentives and prevention so that they do not have to be imposed. They need to be strengthened and you can do quite a bit within the framework of the current treaty. On other questions -- on incentives that are not to do with financial payments -- we will check if a change or an addition to the treaties is necessary."

CYPRIOT FINANCE MINISTER CHARILAOS STAVRAKIS

"We have full confidence in the ECB that stress tests are appropriate. We remain optimistic that they will be a sign of strength for the European banking system when the results come out. Even if there are a few banks which in theory fail this test.

It is important to show investors that the European banking system at large remains strong."

SLOVAK FINANCE MINISTER IVAN MIKLOS

"There is a session of the government tomorrow. Yesterday we had a long discussion on that (signing the EFSF agreement), and hopefully we will decide tomorrow."

EU ECONOMIC AND MONETARY AFFAIRS COMMISSIONER OLLI REHN

"It is fully in the self interest of each and every bank for there to be full disclosure of the results of the stress tests, that is the best way of restoring confidence to the banking sector.

"Of course in parallel member states need to have national financial backstops in place in case there are pockets of vulnerability in the banking sector. However, I am confident that overall the European banking sector will show resilience in these stress tests."