News / Europe

EU Leaders to Discuss Rescue Plan for Greece

Workers take part in a rally during a protest by the PAME Communist-affiliated union in central Athens, July 20, 2011
Workers take part in a rally during a protest by the PAME Communist-affiliated union in central Athens, July 20, 2011
Lisa Bryant

There is new hope that European Union leaders gathering for a crisis summit Thursday will come up with a detailed deal for debt-strapped Greece after the EU's two most powerful members reached agreement.

There are no immediate details on a proposed rescue plan for Greece, reached by European heavyweights France and Germany late Wednesday. But a statement released following a meeting between French President Nicolas Sarkozy and German Chancellor Angela Merkel said it would include participating from the banking sector - a key German demand.

Leaders of the 27-member European Union will discuss that proposal during a summit in Brussels, following growing panic in financial markets. The concern has widened beyond the shaky finances of Greece, Portugal and Ireland, who have all received EU rescue packages, to include Spain and Italy.

Last week, the International Monetary Fund warned the Greek crisis could contaminate other countries sharing the euro currency. Experts say Greece will need a second bailout of around $157 billion.

Speaking to reporters on Wednesday, European Commission chief Jose Manuel Barroso said the problems facing the 17-nation eurozone could have serious repercussions on the global economy.

"Nobody should be under any illusion. The situation is very serious," he said. "It requires a response - otherwise the negative consequences will be felt in all corners of Europe and beyond."

Barroso outlined what is needed to address the crisis, including dealing with Greece's public debt and its struggling banking sector, and making the eurozone's bailout fund more flexible.

Economics expert Venessa Rossi, of the Chatham House policy institute in London, says it is critical the EU leaders reach a clear agreement for Greece at the summit.

"If they don't do that, then I think the speculation about the other [troubled] countries will actually become worse and we will find ourselves in a widening crisis," said Rossi.

Rossi says the EU must address the widespread sentiment that Greece will default on its debt, even if it chooses to use less alarming terminology.

"We have to be quite clear about how much money is being put on the table, what will happen over the next few years that the financing is guaranteed and it is perfectly true that this is borderline to credit agencies calling it a restructuring," said Rossi.

Rossi and other experts believe that if EU leaders put off tough decisions once again, the eurozone's financial woes will only continue to mount during the summer break - making for a very difficult autumn ahead.

You May Like

China Announces Corruption Probe into Senior Ex-Leader

Former security chief and member of Politburo Standing Committee, Zhou Yongkang, being probed for suspected 'serious disciplinary violation' More

India, US Look to Reset Ties During Kerry Visit

This week's talks will be first high level interaction between two countries since Prime Minister Narendra Modi took charge More

Video Young African Leadership Program Renamed to Honor Mandela

YALI program, launched by President Obama in 2010, aims to build skills in business, entrepreneurship, public management and civic leadership More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Vietnamese Staging Chinese Product Boycott After Oil Rig Spati
X
Reasey Poch
July 28, 2014 7:18 PM
China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video Vietnamese Staging Chinese Product Boycott After Oil Rig Spat

China recently pulled an oil rig from an area of the disputed South China Sea that Vietnam also claims. Despite the action, the incident has had a lingering effect on consumers in Vietnam. VOA's Reasey Poch reports from Hanoi on an effort to boycott Chinese products.
Video

Video ESA Spacecraft to Land on a Comet

After a long flight through deep space, a European Space Agency probe is finally approaching its target -- a comet millions of kilometers away from earth. Scientists say the mission may lead to some startling discoveries about the origins of the water on earth. VOA’s George Putic has more.
Video

Video Young Africans Arrive in US for Leadership Program

President Barack Obama's Young African Leadership Initiative has brought hundreds of young Africans to the United States for a six-week program aimed at building their knowledge and skills in fields such as public administration and business. Out of the 50,000 young Africans who applied for the program, just one percent was accepted. VOA's Laurel Bowman caught up with some of those who made the cut and has this report.
Video

Video In Honduras, Amnesty Rumors Fuel US Migration Surges

False rumors in Central America are fueling the current surge of undocumented young people being apprehended at the U.S. border. The inaccurate claims suggest the U.S. will give amnesty to young migrants from the region. As VOA's Brian Padden reports from Honduras, these rumors trace back to President Obama's 2012 executive order to halt deportations for some young undocumented immigrants already living in the United States.
Video

Video Students in Business for Themselves

They're only high school students, but they are making accessories for shoes, fabricating backpacks and doing product photography - all through their own businesses. It's the result of a partnership between a non-profit organization that teaches entrepreneurship and their schools. VOA's Mike O'Sullivan and Deyane Moses met the budding entrepreneurs near Los Angeles.
Video

Video Astronauts Train in Underwater Lab

In the world’s only underwater laboratory, four U.S. astronauts train for a planned visit to an asteroid. The lab - called Aquarius- is located five kilometers off Key Largo, in southern Florida. Living in close quarters and making excursions only into the surrounding ocean, they try to simulate the daily routine of a crew that will someday travel to collect samples of a rock orbiting far away from earth. VOA’s George Putic has more.

AppleAndroid