News / Economy

Eurozone Leaders Say Big Financial Stimulus Needed

From left, Spanish Prime Minister Mariano Rajoy, French President Francois Hollande, Italian Prime Minister Mario Monti and German Chancellor Angela Merkel Villa Madama, Rome, June 22, 2012.From left, Spanish Prime Minister Mariano Rajoy, French President Francois Hollande, Italian Prime Minister Mario Monti and German Chancellor Angela Merkel Villa Madama, Rome, June 22, 2012.
x
From left, Spanish Prime Minister Mariano Rajoy, French President Francois Hollande, Italian Prime Minister Mario Monti and German Chancellor Angela Merkel Villa Madama, Rome, June 22, 2012.
From left, Spanish Prime Minister Mariano Rajoy, French President Francois Hollande, Italian Prime Minister Mario Monti and German Chancellor Angela Merkel Villa Madama, Rome, June 22, 2012.
Lisa Bryant
PARIS - Leaders of the four top eurozone economies called for more funds to shore up the region's lagging economy at the end of a tumultuous financial week.

Following talks in Rome, French, German, Italian and Spanish leaders said they had agreed that a new stimulus package worth about $163 billion was critical in rebooting the eurozone economy.

At a joint press conference, French President Francois Hollande said the funds amounted to about 1 percent of the region's gross domestic product. He said that if approved, the package will help spur growth.

The leaders are tying to define a common position ahead of a full-fledged European Union summit next week. The 17-member eurozone is under intense pressure to find a lasting solution to its sovereign debt and banking crisis. In Luxembourg, where EU finance ministers wrapped up two days of talks, International Monetary Fund chief Christine Lagarde jacked up the heat.

"We are clearly seeing additional tension and acute stress applying to both banks and sovereigns [nations] in the euro area," said Lagarde. "And with that in mind, the IMF believes that a determined and forceful move toward a complete European monetary union should be affirmed in order to restore faith in the system. Because as we see it at the moment, the viability of the European monetary system is questioned."

The doubts were underscored this week as Spain's long-term borrowing costs spiked to new highs. Late Thursday, Moody's rating agency also downgraded 15 banks and financial institutions.

But EU members are divided over ways to reboot the eurozone economy. And under French President Hollande, a once-united front between France and Germany has splintered on issues like eurobonds and growth measures.

The finance ministers are also divided on another issue - an EU wide financial transactions tax - with Britain and Sweden strongly against. But a smaller group of nations, led by Germany and France, may ultimately adopt such a levy.

You May Like

Video On the Scene: In Gaza, Darkness Brings Dread and Death

Palestinians fear nighttime raids, many feel abandoned by outside world, VOA's Scott Bobb reports More

African Small Farmers Could Be Key to Ending Food Insecurity

Experts say providing access to microloans, crop insurance, better storage facilities, irrigation, road systems and market information could enable greater production More

University of Michigan Wins Solar Car Race

Squad guided its student-designed solar-powered vehicle to fifth consecutive time victory in eight-day bi-annual American Solar Challenge 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

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.