fresh concern over eurozone debt crisis
Last Updated : GMT 06:41:18
Arab Today, arab today
Arab Today, arab today

Fresh concern over eurozone debt crisis

Arab Today, arab today

Arab Today, arab today Fresh concern over eurozone debt crisis

Rome - AFP

Italy was to choose new leadership on Sunday to steer it through a debt crisis that toppled Silvio Berlusconi, amid fresh warnings that the eurozone's woes are threatening the global economy. Italians danced and shouted for joy in the streets as the flamboyant and controversial Berlusconi on Saturday quit the prime minister's post that he has held for 10 of the past 17 years, becoming the latest European leader brought down by the debt crisis. Italian President Giorgio Napolitano began a marathon round of talks on Sunday to choose Berlusconi's successor, with former EU commissioner Mario Monti widely expected to be tipped to head a new transition government. The president is in a race against time to have a new cabinet in place before the markets open on Monday, when the eurozone's third-largest economy will face its first bond auction test of the post-Berlusconi era. Meanwhile concerns mounted that the eurozone's woes were threatening the world economy, with US President Barack Obama warning that despite positive developments in Italy and debt-ridden Greece, much remained to be done to assure markets that countries like Italy could finance their debts. "I think that we are not going to see massive growth out of Europe until the problem is resolved," Obama said. "And that will have a dampening effect on the overall global economy." Chinese President Hu Jintao also warned that global economic recovery was "fraught with greater instability and uncertainty." Italy has a toxic mix of a 1.9 trillion euro (2.6 trillion dollar) debt, an extremely low growth rate and borrowing costs that are climbing ever higher -- last week, long-term borrowing costs rose above 7.0 percent, a dangerous level that could make the nation's debt unsustainable within months. Although both the IMF and European Financial Stability Facility have reportedly offered financial help, some economists have warned that, unlike fellow eurozone members Greece, Ireland and Portugal, Italy may be "too big to bail". Monti, a respected economist who lacks experience in political office, will have to convince Italians to put up with tough austerity measures while pushing through urgently needed reforms to jump-start the ailing economy. Greece's new government was in a race against time of its own to implement new austerity measures agreed with the EU on October in order to unlock funds essential to avoiding bankruptcy. In a meeting on Saturday with the new Greek Prime Minister Lucas Papdemos, the leaders of Germany and France stood firm on their demand that before Athens received any more bailout money, it had to implement the measures that it agreed. "The payment of the next tranche (of the bailout) can only take place when a decisive step has been taken in this matter," said a statement from French President Nicolas Sarkozy's office. The procedure to confirm the new Greek government -- which was voted in with a comfortable 254 out of 300 cross-party votes -- will begin in parliament Monday, with a vote of confidence expected Wednesday. The new government's first job will be to persuade the EU and the IMF to disburse an eight billion euro slice of aid from a 2010 bailout deal that is needed by December 15 before state coffers run dry. Then it must force through painful austerity measures exacted as the price for a second EU rescue package which gives Athens 100 billion euros in loans, the same amount in debt reduction and a further 30 billion in guarantees. Pushing through new austerity measures is a daunting task in Greece, which has witnessed massive protests against further belt-tightening, which have often turned violent. In Portugal, another European country that has received bailout money, civil servants and soldiers staged a protest in Lisbon on Saturday against austerity measures aimed at putting the country's finances in order. The eurozone economic outlook meanwhile remained grim -- an EU forecast this week said growth across the eurozone next year would collapse to 0.5 percent -- a steep drop from its previous prediction of 1.8 percent. Although a statement on Saturday from the French presidency said that Sarkozy and German Chancellor Angela Merkel had "reaffirmed their determination to totally defend the euro," Germany's Der Spiegel magazine reported that Berlin has made contingency plans in the event that Greece has to quit the eurozone. With the debt crisis spreading like wildfire, France has also begun to fear that it will be next in the market's firing line -- the gap between French and German 10-year bond yields has climbed to new heights, with France now paying 3.46 percent interest on its bonds, more than twice as much as Germany. "After Greece and Italy, France?" worried a headline in Friday's Le Monde.

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*

fresh concern over eurozone debt crisis fresh concern over eurozone debt crisis

 



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*

fresh concern over eurozone debt crisis fresh concern over eurozone debt crisis

 



Arab Today, arab today
Arab Today, arab today Skincare PR Performance Full Year 2017

GMT 10:35 2018 Monday ,22 January

Skincare PR Performance Full Year 2017
Arab Today, arab today New hunt for flight MH370 gets under way

GMT 02:36 2018 Wednesday ,24 January

New hunt for flight MH370 gets under way
Arab Today, arab today Modern colorful bedroom renovation

GMT 11:23 2017 Thursday ,21 December

Modern colorful bedroom renovation
Arab Today, arab today France sanctions businesses linked

GMT 01:58 2018 Wednesday ,24 January

France sanctions businesses linked
Arab Today, arab today Turkey detains dozens more

GMT 02:09 2018 Wednesday ,24 January

Turkey detains dozens more
Arab Today, arab today
Arab Today, arab today

GMT 07:22 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 07:23 2017 Thursday ,23 November

Zimbabwe's next leader heads home after Mugabe exit

GMT 22:38 2018 Tuesday ,23 January

Bahrain Press headlines

GMT 20:34 2018 Saturday ,20 January

Bahrain press headlines

GMT 16:25 2016 Thursday ,22 December

Italian bank Monte Paschi edges closer to state bailout

GMT 06:03 2014 Wednesday ,09 April

Please .. Let Gaza breathe!

GMT 09:12 2017 Friday ,17 November

Gleam Futures represents Grace Beverley

GMT 04:18 2017 Sunday ,26 November

Bella magazine appoints celebrity writer

GMT 06:00 2017 Sunday ,29 October

Childrenswear brand Once appoints Dyelog

GMT 16:33 2014 Thursday ,13 November

Al-Ehtimam Bil Aakhareen

GMT 03:34 2017 Sunday ,05 November

Needle & Thread relocates press office

GMT 14:56 2017 Thursday ,21 December

Ryanair says formally recognises pilots' union

GMT 16:03 2017 Thursday ,21 December

US hits Myanmar general in new global rights sanctions
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