eurozone crisis spreads alarm
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Eurozone crisis spreads alarm

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Eurozone crisis spreads alarm

Brussels - AFP

The crisis gripping the core of the eurozone worsened on Friday, ramping up debt risks for Italy and Spain, pushing Greece to call for urgent action and feeding market alarm that recession threatens. The rising pressure forced some top EU leaders to take time from their summer holidays to focus on the crisis in a wider global context of alarm about flagging growth. The possibility of the creation of common eurobonds, until now taboo, is in the air. German Chancellor Angela Merkel, French President Nicolas Sarkozy and Spanish Prime Minister Jose Luis Rodriguez Zapatero were to hold urgent telephone talks, the French government said. Greek Prime Minister George Papandreou urged that his country\'s second bailout to be nailed down \"now.\" Spanish Prime Minister Jose Luis Rodriguez Zapatero has already suspended his holiday to fight the crisis. European Union Economic Affairs Commissioner Olli Rehn rushed back to Brussels to give a press conference at about mid-day on the crisis. After European Commission President, Jose Manuel Barroso, worried markets on Thursday with a message \"we are no longer managing a crisis just in the euro-area periphery\", Rehn stepped in to steady the ship in a BBC radio interview. Barroso also said it was urgent to re-examine \"all elements\" including the size of eurozone rescue funding resources -- given that bailouts for Spain and Italy would be far bigger than rescues so far. Rehn said that Europe had to come up with a \"credible and respected\" European Financial Stability Facility (EFSF), already involved in bailouts for Ireland, Portugal and the second Greek rescue. \"It is now essential to speed up the implementation and the approvals in the member states,\" he said. Rehn\'s services will publish next month a new plan for eurozone states to be able to issue jointly-backed sovereign \'eurobonds,\' he also said. The Greek rescue rushed out on July 21, worth 160 billion euros ($226 billion), was intended also to stop contagion and calm the crisis, but much detail and application was left until later. It included the involvement of private investors which has made them wary of holding on to bonds in other threatened eurozone countries. The rescue announcement has failed to calm markets, and the crisis is now affecting core countries, mainly Italy, but also France for which the borrowing risk compared to German borrowing rates, is showing a record high gap. Stocks have been weak for several days but in the last 24 hours they have plunged largely also because of weaknesses in the US economy, wiping hundreds of billions of dollars from share values worldwide, accelerating prospects of a global downturn or even double-dip recession. Moneycorp said in their note to investors: \"Barroso’s comments rattled the markets as investors interpreted this as an admission that the plans to resolve the European debt crisis are too complex and incomplete.\" They added that European Central Bank (ECB) President Jean-Claude Trichet \"also acknowledged yesterday that there is a \'particularly high\' level of uncertainty about the economic outlook. \"This causes great concern for investors and in particular those that lend to banks.\" At ING bank, analyst Alessandro Giansanti also said that Trichet\'s comments on the fragility of growth had affected the bond market, and that the gap between French and German borrowing rates \"starts to become a concern.\" The ECB is resuming bond-buying after a hiatus going back months, and a Belgian member of the central bank\'s management told media here that this would include Italian and Spanish debt. In Greece, Papandreou said it was time to deliver on promises. \"The decisions having been taken by the leaders, the appropriate European institutions as well as member-states should proceed now to action and, in particular, the national parliaments, where that is necessary,\" he said in his letter to Barroso. Papandreou echoed concerns by Barroso that markets are sceptical of the eurozone\'s systemic capacity to cope. The spread or difference in the rate of return on Spanish 10-year government bonds and the benchmark German bond, the strongest in the eurozone, hit another record on Friday at 417 basis points (4.17 percentage points) and 416 basis points for Italian debt in early deals.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eurozone crisis spreads alarm eurozone crisis spreads alarm

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

eurozone crisis spreads alarm eurozone crisis spreads alarm

 



GMT 10:08 2018 Wednesday ,24 January

Microsoft to open 4 data centres

GMT 19:57 2018 Tuesday ,23 January

Farm-fresh from Kerala to the UAE, in just one day

GMT 10:31 2014 Tuesday ,23 December

Mirages of failure: Lebanon cannot wait

GMT 00:54 2011 Saturday ,24 December

Super Barca crush Hospitalet in Copa Del Rey

GMT 17:44 2017 Sunday ,12 November

QSTec and Philippines Discuss Solar Power Cooperation

GMT 17:25 2016 Tuesday ,29 November

Philippine troops drop bombs on rebels

GMT 21:05 2017 Wednesday ,18 October

IOF fires at a 20-year-old Palestinian boy

GMT 23:38 2011 Thursday ,06 October

Rare albino alligator goes on show in US

GMT 04:40 2015 Tuesday ,22 September

Car bomb blast in Somali capital

GMT 19:50 2016 Thursday ,01 September

Car Bomb Explosion Rocks Afghan Logar

GMT 07:52 2011 Monday ,01 August

BS Yeddyurappa has resigned

GMT 11:23 2016 Thursday ,29 December

Colombia lawmakers pass FARC amnesty law

GMT 13:22 2011 Wednesday ,22 June

Michelle Obama urges AIDS fight
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2025 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice