Arab Today, arab today europe grapples with \greatest challenge\ over debt
Last Updated : GMT 05:36:13
Arab Today, arab today
Arab Today, arab today

Europe grapples with \'greatest challenge\' over debt

Arab Today, arab today

Arab Today, arab today Europe grapples with \'greatest challenge\' over debt

Strasbourg - AFP

The European Union grappled Wednesday with the biggest challenge of its history as Greece readied a last-gasp pitch to secure vital bailout funds. Nearly four weeks after international auditors abruptly quit Athens, placing eight billion euros of promised loans in doubt, the key negotiators announced a return to crunch talks in Greece from Thursday. \"We are today faced with the greatest challenge our Union has known in all its history,\" European Commission president Jose Manuel Barroso warned in his annual \"state of the union\" address to the European Parliament in Strasbourg. European stock markets were mostly cautious as optimism faded over whether European leaders can resolve the debt crisis, with German Angela Merkel suggesting a second Greek bailout may need to be renegotiated while Berlin, Paris and the European Central Bank split over how much banks should lose in the event of a default. \"This sort of in-fighting amongst Europe\'s leaders will only serve to undermine the recent rally in shares and the euro, underlining the importance of the audit\'s findings,\" said Moneycorp in a note to investors. In Brussels, EU economic affairs spokesman Amadeu Altafaj said crunch negotiations over blocked money the Greek government says it needs to avoid an early default will resume on Thursday. Once auditors decide the government in Athens is doing enough to merit more financial aid, eurozone partners and the International Monetary Fund will still have to sign off the money. Finance ministers meet on Monday in Luxembourg, but Altafaj indicated that the negotiations in Athens would not be concluded in time, saying a further meeting of the 17-nation currency Eurogroup would be called to make that decision \"as soon as possible.\" While Greece is left waiting for the funds from a first 110-billion-euro bailout approved last year, a few eurozone states have yet to sign off on a second 159-billion-euro Greek rescue package that was agreed in July. German lawmakers are due to vote on Thursday on expanding the scope and size of the EU\'s current rescue fund -- the European Financial Stability Facility (EFSF) -- which has already helped bail out Ireland and Portugal. Parliament in Finland, another country where there is deep-rooted reluctance to bailing out eurozone strugglers, approved changes to the fund on Wednesday. Greek Prime Minister George Papandreou, who held talks in Berlin on Tuesday with Merkel, said his country was making a \"superhuman effort\" to bring down its massive debt of more than 350 billion euros ($475 billion). In an interview with Greece\'s state television, Merkel said the audit could determine if a second bailout set up in July will stand as originally agreed. \"Should we renegotiate or not?\" Merkel said. \"Of course we would prefer that the figures remain unchanged, but I cannot foretell (the mission\'s report).\" A government spokesman said Greece would escape default. \"We are not far from securing (the loan tranche). One by one, pending issues are settled,\" deputy government spokesman Angelos Tolkas told Flash Radio. However the Financial Times reported the bailout had run into trouble, with some eurozone members pushing for private creditors to take a bigger writedown on their Greek bond holdings. The Greek parliament on Tuesday approved a controversial property tax that aims to plug a budget hole and help unlock the EU-IMF funds but this package is still not enough to save the Greek economy. A new EU rescue worth 159 billion euros was put together in July but the Greek government must jumpstart a privatisation drive that is months behind schedule to secure the funding. The government\'s austerity measures have met fierce resistance and Athens was again paralysed by a transport strike Wednesday, with police again using tear gas, ahead of protests by pensioners, municipal workers and students. Pushing for more unity in Europe, Barroso promoted the creation of controversial joint eurozone bonds, despite German opposition, saying they would be a \"natural and advantageous step for all\" against the crisis. The 17-nation single currency area is sharply divided over the idea of pooling their debt. Seeking to prevent future debt crises, the European parliament adopted on Wednesday stiffer budget rules armed with the threat of fines against governments with runaway deficits and debts. In Paris, the French government took its own steps to rein in spending, presenting an austerity budget for 2012 -- accompanied by a warning that eurozone debt \"turbulence\" could derail timid growth. France\'s total, accumulated debt will be higher than expected, hitting a record 87.4 percent of gross domestic product. French banks have taken a hammering on the stock market in recent weeks given high exposure to Greek debt, and ratings giant Standard & Poor\'s has previously warned Paris could suffer a credit downgrade depending on what steps Europe takes to fill a wider financial black hole over coming years.  

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*

Arab Today, arab today europe grapples with \greatest challenge\ over debt Arab Today, arab today europe grapples with \greatest challenge\ over debt

 



Arab Today, arab today
Arab Today, arab today Fadi explains secrets of  Nancy Ajram's newlook

GMT 18:23 2017 Friday ,24 February

Fadi explains secrets of  Nancy Ajram's newlook
Arab Today, arab today Tourist guide explains types of tourism

GMT 18:28 2017 Saturday ,25 February

Tourist guide explains types of tourism
Arab Today, arab today Expresses Algerian history by woody figures

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures
Arab Today, arab today Iran complying with nuclear deal

GMT 07:14 2017 Saturday ,25 February

Iran complying with nuclear deal
Arab Today, arab today Ayat Abaza says state TV presented major stars

GMT 03:52 2017 Sunday ,26 February

Ayat Abaza says state TV presented major stars

GMT 05:20 2017 Thursday ,23 February

WTO ratifies first multilateral trade deal

GMT 21:36 2017 Wednesday ,22 February

Opec needs to prolong cuts to eliminate surplus

GMT 16:32 2017 Wednesday ,22 February

US Treasury chief tells IMF to monitor currencies

GMT 16:08 2017 Wednesday ,22 February

Qatari banks merger to rebalance financial sector
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Reading therapy relieves mental disorders

GMT 15:39 2017 Friday ,24 February

Reading therapy relieves mental disorders
Arab Today, arab today UK appoints 1st Scotland Yard chief in 188 years

GMT 05:14 2017 Thursday ,23 February

UK appoints 1st Scotland Yard chief in 188 years
Arab Today, arab today Penguins in the age of dinos

GMT 11:44 2017 Saturday ,25 February

Penguins in the age of dinos
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today 'Constructive' Vauxhall talk with union

GMT 08:54 2017 Saturday ,25 February

'Constructive' Vauxhall talk with union
Arab Today, arab today Tesla back into red but revenue grows

GMT 07:27 2017 Thursday ,23 February

Tesla back into red but revenue grows
Arab Today, arab today Actress Lobna Abdel Aziz proud of her career

GMT 06:08 2017 Thursday ,23 February

Actress Lobna Abdel Aziz proud of her career
Arab Today, arab today Ex-yoga missionary unleashes rage

GMT 12:16 2017 Thursday ,23 February

Ex-yoga missionary unleashes rage

GMT 07:36 2017 Wednesday ,22 February

Wafaa Amer is happy for Sherihan’s return

GMT 12:35 2017 Tuesday ,21 February

63-Year-Old Woman Delivers Baby

GMT 22:42 2017 Thursday ,23 February

Nasima Gamei revives heritage in jewelries

GMT 10:28 2017 Wednesday ,22 February

Milan laughs while Rome cries

GMT 20:33 2017 Friday ,17 February

To release new antiques collection

GMT 10:20 2017 Thursday ,23 February

Brazil's top diplomat resigns

GMT 11:54 2017 Thursday ,23 February

Saudis await visitors but will they come?

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 20:02 2017 Tuesday ,21 February

Nohan Seyam designs beautiful accessories
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday