Arab Today, arab today eurozone states get moving after ecb fed moves
Last Updated : GMT 05:21:22
Arab Today, arab today
Arab Today, arab today

Eurozone states get moving after ECB, Fed moves

Arab Today, arab today

Arab Today, arab today Eurozone states get moving after ECB, Fed moves

Frankfurt - AFP

Urgent action on the eurozone debt crisis picked up Wednesday with emergency budget talks in Rome and Paris after the ECB laid down terms for shoring up Europe\'s single currency.A new round of stock market free-falls underscored fragile sentiment despite a US Federal Reserve statement that forecast low US credit rates for the next two years. Central banks have a central role in dealing with the trans-Atlantic debt crises, and it was only after the European Central Bank resumed buying public debt, including Italian and Spanish bonds, that pressure eased on Rome and Madrid. The relief could be short lived however, since markets erupted again after Greece\'s finance minister some of the bonds included in its debt swap might stretch further than initially thought, and rumours swirled about a French credit ratings downgrade. The ECB has tried to calm markets verbally but only intervened in the one for public debt after it was clear Italian Prime Minister Silvio Berlusconi had heard ECB president Jean-Claude Trichet\'s oft-repeated call for a \"quantum leap\" in the tightening up of public finances. The eurozone debt crisis, which threatens the entire bloc barring clear progress towards a new framework, is part of a wider, deeper drama based on massive US debt and fears of a new recession.The ECB \"actively\" resumed purchases of bonds issued by distressed countries now including Italy, the third-biggest eurozone economy, and Spain, which is number four. France, the second-biggest and an \"AAA\" credit rated country, has seen its borrowing rate drift away from benchmark 10-year German bunds meanwhile, and was hit by rumours it would be the next major economy to suffer a downgrade.France swiftly denied the speculation and the ratings agency Fitch promptly confirmed Paris\' top rating. President Nicolas Sarkozy also promised new measures by August 24 to slash France\'s public deficit in a bid to reassure markets.Sarkozy had broken off a holiday on the Riviera to fly back to Paris for an urgent cabinet meeting on the crisis.France currently chairs the Group of Seven industrialised nations, and Finance Minister Francois Baroin said the new measures would take account of \"global uncertainty\" and a historic cut of the US rating by Standard & Poor\'s.In Italy, Berlusconi has called parliament back early from summer holidays to vote Thursday on a constitutional amendment that would require a balanced budget. He also met trade unions and business leaders Wednesday to nail down reforms they shunned just a month earlier, and press reports said measures should be adopted at an emergency cabinet meeting that might take place next week. Italy welcomed a sharply lower rate of 2.959 percent when it tendered 6.5 billion euros ($9.3 billion) in 12-month bonds on Wednesday, down from the 3.67 percent it had to pay in a similar operation last month.Italian borrowing rates had leapt on concern that Rome could be forced into seeking a bailout like those granted to Greece, Ireland and Portugal. The burst of eurozone activity came a day after Trichet warned in a radio interview that Europe was facing \"the worst crisis since the Second World War.\" In this context, \"we expect governments to do what we consider to be their work, their duty,\" he declared. \"We have been extremely clear with the Italian government over recent days in asking for a number of decisions to be taken,\" Trichet said. Economists felt the ECB was now dictating terms to eurozone governments in exchange for controversial aid that only it can provide at short notice. \"The ECB is now accelerating the process of conforming to the standards it requires by really dictating here the changes it requires to provide support,\" Barclays Capital managing director Julian Callow told AFP. Berenberg Bank senior economist Christian Schulz added that the ECB was \"the only one that can impose conditions on Italy.\" But Moneycorp analysts wrote that Trichet was also trying to make it clear the central bank needed help as well. \"His unspoken message was that, with reserves of around 500 billion euros, the ECB does not have the resources to soak up 1.5 trillion euros of Italian government bonds,\" they said.

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 states get moving after ecb fed moves Arab Today, arab today eurozone states get moving after ecb fed moves

 



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