Arab Today, arab today germany\s merkel faces tough questions over eu summit
Last Updated : GMT 22:15:37
Arab Today, arab today
Arab Today, arab today

Germany\'s Merkel faces tough questions over EU summit

Arab Today, arab today

Arab Today, arab today Germany\'s Merkel faces tough questions over EU summit

Berlin - AFP

German Chancellor Angela Merkel faced tough questions on Wednesday over EU summit decisions to save the euro as growing scepticism weighed on financial markets and the euro. Merkel prepared to explain to the German Bundestag or lower parliamentary house why she believes the agreements reached at last week\'s EU summit are a success, despite fading market confidence with stocks falling across Europe and the euro sharply lower against the dollar. European Union leaders from 26 of the 27 member states agreed at a high-stakes Brussels summit last week to back a Franco-German drive for tighter budget policing in a bid to save the eurozone. After Britain, which does not use the euro, blocked changes to an EU-wide treaty, the other 26 EU states signalled their willingness to join a \"new fiscal compact\" imposing tougher budget rules. But while leaders had hoped the agreement, which would aim to eradicate their public deficits under close EU supervision, would reassure jittery financial markets, any respite proved brief. Ratings agency Moody\'s said that the crisis talks had failed to produce \"decisive policy measures\" and threatened to review the credit ratings of all EU states within the next three months. Adding to the negative sentiment were comments by Merkel herself, in which she ruled out an increase in the European Stability Mechanism, the eurozone\'s future bail-out fund. The lending limit of the EMS, which EU leaders agreed at last week\'s summit will be up and running a year earlier than planned, should remain at 500 billion euros ($650 billion), Merkel told deputies of her conservative CDU party late Tuesday. Her stance underscores a rift among some European leaders over boosting the fund\'s firepower and how best to tackle the eurozone\'s fiscal woes. With experts saying that the amount will not be enough to rescue a country such as Italy, analysts at Moneycorp saw the remark as \"the latest in a series of psychological blows to confidence in euroland and its sovereign borrowers. \"The German chancellor dropped another brick on the euro\'s foot,\" the analysts said in a daily investors\' note. In Australia, deputy central bank chief Ric Battellino warned that markets appeared to be pricing in the possibility of a break-up of the eurozone, with wide divergences in interest rates paid by European banks beginning to resemble pre-euro levels. \"The formation of the euro area brought convergence of interest rates towards the low levels previously enjoyed only by Germany, but pre-euro relativities are now re-asserting themselves,\" the Reserve Bank of Australia deputy said. \"This suggests that markets are pricing in the possibility of a break-up of the euro area or a significant risk of default by some governments, or both.\" A \"change in the composition of the euro area\" could not be ruled out, Battellino warned. Greece\'s inability trouble to balance its books and the lingering fear that it could default on its huge debts have led many analyst to suggest the country could end up falling out of the euro club. Finally, another negative for investors came from the United States Federal Reserve which announced it would hold interest rates for some time to come, warning of severe headwinds for the global economy. But despite such concerns, the Fed did not unveil any fresh stimulus measures to kickstart growth, triggering a new sell-off on the markets, said Ralph Herre, analyst at LBBW. CMC Markets analyst Michael Hewson, agreed. \"Against a backdrop of concerns about ratings downgrades, a lack of large scale European Central Bank intervention, and Angela Merkel\'s reiteration that there would be no increase in the new bailout fund, it was news out of the United States that really helped push things along,\" Hewson said. Ironically, German Finance Minister Wolfgang Schaeuble and Bundesbank President Jens Weidmann were set to mark the 10th anniversary of the euro later on Wednesday.  

arabstoday
arabstoday

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 germany\s merkel faces tough questions over eu summit Arab Today, arab today germany\s merkel faces tough questions over eu summit

 



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 germany\s merkel faces tough questions over eu summit Arab Today, arab today germany\s merkel faces tough questions over eu summit

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today O'Leary: Could ground more planes

GMT 06:49 2017 Friday ,22 September

O'Leary: Could ground more planes
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Huthis stage defiant rally 3 years

GMT 05:29 2017 Friday ,22 September

Huthis stage defiant rally 3 years
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today All eyes on May as she prepares

GMT 10:16 2017 Friday ,22 September

All eyes on May as she prepares
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes pumps 1 bln euros    

GMT 06:04 2017 Friday ,22 September

Mercedes pumps 1 bln euros    
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Youssra prepares for launching her  program

GMT 08:59 2017 Wednesday ,20 September

Youssra prepares for launching her program
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film

GMT 18:09 2017 Thursday ,21 September

China lifts 10-year travel ban

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 18:03 2017 Thursday ,21 September

Alarm over flesh-eating ulcer cases

GMT 07:00 2017 Wednesday ,20 September

A no-frills business success

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
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