Arab Today, arab today eurozone faces crunch week in debt crisis
Last Updated : GMT 03:17:41
Arab Today, arab today
Arab Today, arab today

Eurozone faces crunch week in debt crisis

Arab Today, arab today

Arab Today, arab today Eurozone faces crunch week in debt crisis

Paris - AFP

Eurozone countries must settle their debt crisis at an emergency summit this week to stop Greece toppling into default and dragging bigger euro economies into deeper trouble. After finance ministers failed to clinch a new rescue package for Greece on July 11, stocks and the euro tumbled amid warnings that a Greek debt default could infect the third and fourth biggest eurozone economies, Italy and Spain. Some observers warned the crisis could drive Greece to abandon the euro and could even break up the eurozone altogether. \"The policymakers\' continued dithering appears to be pulling both Spain and Italy further into the crisis,\" wrote analysts at financial consultancy Capital Economics. \"Either they stop fiddling and take decisive action or they may soon have to start contemplating the unthinkable.\" The 17 Eurozone countries want to impose a tax on banks to involve the private sector in paying for the rescue of indebted Greece, according to German daily Die Welt. The tax would target even banks \"not directly involved in Greece\", the newspaper wrote Monday, citing highly-placed diplomatic sources involved in the talks. The plan also envisages that the private banking sector will \"contribute to the repurchase of Greek bonds,\" it wrote, without giving further details. EU president Herman Van Rompuy said the summit in Brussels on July 21 would focus on both the financial stability of the eurozone and future financing of the Greek programme. German Chancellor Angela Merkel described the meeting as \"urgently necessary,\" in comments to ARD broadcaster Sunday. \"We have to issue a sign of stability, and I think we can move forward on a new Greek programme ... we have to deal with Greece,\" she added. She said of the gathering however: \"I am only going if there\'s an outcome.\" Greek Prime Minister George Papandreou said it was time for Europe to \"wake up\" and find a conclusive solution to his country\'s debt crisis. The EU and International Monetary Fund bailed out Greece in May 2010 with a package worth 110 billion euros ($160 billion) in exchange for a series of unpopular austerity measures to stabilise its public finances. The country is still in serious difficulty and needs another bailout valued at around the same amount. Its debt has exploded and market hostility has kept it from raising fresh loans. Ireland and Portugal have also had to be bailed out, while Italy and Spain are seen to be at risk due to their strained public finances. Italy\'s parliament on Friday passed a 48-billion-euro austerity budget aimed at slashing the public deficit by 2014. As eurozone leaders consider ways to buy up Greek debt to take the short-term pressure off, a key sticking point is what the role of private lenders in this restructuring might be. Germany is pushing for Greek banks to help shoulder the burden of a second bailout scheme but critics warn that markets could interpret this as an effective default, with banks forced to let Greece off, and panic would escalate. European Central Bank President Jean-Claude Trichet said in an online interview with Financial Times Deutschland (FTD) that eurozone governments will be \"responsible\" for Greek debt if there is a default. \"I have warned heads of state and government several times that in the case of a country defaulting on payments, it will no longer be possible to accept their bonds as regular guarantees. \"In these conditions, the governments (responsible for the situation) will have to fix the situation themselves. It will be their responsibility.\" Merkel told ARD: \"We are trying to do all we can to avoid something even more difficult (than involving private creditors). \"But I say clearly, the involvement of private creditors already shows that we have a particular problem with Greece due to its very, very significant debt.\" EU officials have also mooted a convoluted plan to lend Greece money with which it can buy back its own debt at a reduced price on secondary bond markets, effectively postponing its repayments to give it breathing space. Some have suggested the eurozone issue \"eurobonds\" to raise money for Greece at lower borrowing rates. The head of Germany\'s central bank Jens Weidmann slammed this as unfair to European taxpayers, in comments published Sunday. Market tension was heightened last week by the release of the results of \"stress tests\" which diagnosed eight European banks as unstable, after the close of markets on Friday. Meanwhile markets are anxiously watching a row in Washington between US President Barack Obama and his Republican opponents in Congress who reject his plans to raise the country\'s debt limit to allow more US borrowing. The government has warned that failure to reach a deal could tip the world\'s richest economy into a debt default.

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 eurozone faces crunch week in debt crisis Arab Today, arab today eurozone faces crunch week in debt crisis

 



Arab Today, arab today
Arab Today, arab today Prepares to present her new collection

GMT 14:29 2017 Monday ,20 February

Prepares to present her new collection
Arab Today, arab today Tourism shows signs of recovery

GMT 09:59 2017 Monday ,20 February

Tourism shows signs of recovery
Arab Today, arab today Sarah Belamesh designs antiques of "ceramic"

GMT 19:45 2017 Monday ,20 February

Sarah Belamesh designs antiques of "ceramic"
Arab Today, arab today Optimism on the front line

GMT 07:24 2017 Monday ,20 February

Optimism on the front line
Arab Today, arab today Murder of 2 reporters in Dominican Republic

GMT 22:45 2017 Thursday ,16 February

Murder of 2 reporters in Dominican Republic

GMT 09:38 2017 Monday ,20 February

Japan returns to trade deficit in January

GMT 07:16 2017 Monday ,20 February

Global arms trade highest since Cold War

GMT 06:10 2017 Monday ,20 February

Tourism shows signs of recovery in Egypt

GMT 05:45 2017 Monday ,20 February

Brexit U-turn ruled out by many in EU

GMT 16:23 2017 Sunday ,19 February

Global energy news

GMT 16:05 2017 Sunday ,19 February

Trudeau calls for wider social benefit from economy
View News in Arabic - Business: نفط وبتروكيماويات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Kidogo provides childcare for underserved

GMT 20:24 2017 Wednesday ,15 February

Kidogo provides childcare for underserved
Arab Today, arab today Tragic fluctuations of Bakhtiari's life revealed

GMT 06:50 2017 Wednesday ,15 February

Tragic fluctuations of Bakhtiari's life revealed
Arab Today, arab today London to tax old cars

GMT 14:06 2017 Friday ,17 February

London to tax old cars
Arab Today, arab today Pluto's unruly moons

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons
Arab Today, arab today Nissan enhances sales in most markets

GMT 14:08 2017 Monday ,20 February

Nissan enhances sales in most markets
Arab Today, arab today Competes Sweden and Germans by S90

GMT 22:36 2017 Thursday ,16 February

Competes Sweden and Germans by S90
Arab Today, arab today Egypt to hold first session of Arab film festival

GMT 21:11 2017 Saturday ,18 February

Egypt to hold first session of Arab film festival
Arab Today, arab today Teach monkeys to recognize themselves in mirror

GMT 20:41 2017 Wednesday ,15 February

Teach monkeys to recognize themselves in mirror

GMT 07:30 2017 Saturday ,18 February

Actress Nadeen Al Rassi views art as her entity

GMT 06:40 2017 Friday ,10 February

MP calls for removing text from Islamic story

GMT 19:10 2017 Friday ,17 February

Hats, scarves add beauty to women

GMT 10:26 2017 Tuesday ,14 February

Emergency UN meeting in Harare

GMT 23:29 2017 Thursday ,16 February

Home built on sand castles-style costs $8m

GMT 21:49 2017 Thursday ,16 February

Scientists develop new therapy

GMT 19:16 2017 Friday ,17 February

Aziz House ready to host the tourists

GMT 13:12 2015 Saturday ,09 May

Sheikh Sultan opens Sharjah Centre

GMT 12:39 2017 Monday ,20 February

newest smartphone another winner for Huawei

GMT 13:16 2017 Tuesday ,14 February

First fashion model with Down syndrome
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