News / Europe

European Debt Crisis Summit Starts

British Prime Minister David Cameron, center, speaks with the media as he arrives for an EU summit in Brussels, Dec. 8, 2011.
British Prime Minister David Cameron, center, speaks with the media as he arrives for an EU summit in Brussels, Dec. 8, 2011.

European leaders have started a two-day summit in Brussels in the latest effort to resolve the continent's debt crisis and save the euro.

Some officials have described the European summit as a moment of reckoning for the common currency, under siege by Europe's burgeoning debt crisis.  But before the meeting opened Thursday night, there remained a divergence of opinion on exactly how to resolve the two-year debt contagion that threatens the stability of the world economy.

U.S. President Barack Obama told reporters in Washington that Europe is prosperous enough to resolve the debt crisis if its leaders have the political will to act.

"Europe is wealthy enough that there is no reason why they can't solve this problem," said President Obama. "It is not as if we are talking about some impoverished country that doesn't have any resources and is being buffeted by the world markets and they need to come hat in hand and get help.  This is Europe with some of the wealthiest countries on earth, collectively one of the largest markets on earth, if not the largest."

The economy in the 17-nation bloc that uses the euro has all but stalled, with some analysts saying it has already dipped into a recession. The European Central Bank took a modest step ahead of the summit to boost lending, trimming its prime interest rate a quarter percentage point to one percent, the second cut in two months.

But stocks slid on European and U.S. exchanges after the bank's president, Mario Draghi, dampened speculation that the central bank would increase its purchase of the debt of European governments as one way to cut their borrowing costs. A European regulator said the continent's banks need to raise nearly $154 billion to cover possible losses on government securities they hold.

German Chancellor Angela Merkel and French President Nicolas Sarkozy are calling for the eurozone nations to curb excessive spending and impose strict penalties on violators.  Their plan would also create a unified corporate tax rate and a new financial transaction tax.

President Sarkozy said an agreement is essential.

"Everyone can understand that if on Friday we don't find an agreement, there is no second chance," said President Sarkozy. "I call for the spirit of compromise and speedy decision making."


Before heading to Brussels, the German and French leaders tried to rally support for their plan during a meeting of the center-right European People's Party in the French city of Marseilles. Senior officials said late Wednesday that final agreement may not be reached at the summit.  

One German official told the Associated Press that it might be Christmas (December 25) before a deal is reached.  Another senior official was quoted as saying that some countries "have not understood the seriousness of the situation.

Fears that Europe's debt crisis could spark additional problems have sent jitters through the global financial markets and have prompted warnings from several top credit rating agencies.

Britain, which has its own currency, the pound, has indicated that it may not be willing to sign on to new EU treaty provisions.  Prime Minister David Cameron said earlier this week that he will defend Britain's financial interests at the summit.

Some information for this report was provided by AP, AFP and Reuters.

You May Like

At International AIDS Conference One Goal, Many Paths

The 12,000 delegates attending 20th International AIDS Conference in Melbourne have vastly different visions about how to eradicate disease More

Disasters May Doom Malaysia’s Flag Carrier

Even before loss of two jets loaded with passengers on international flights, company had been operating in red for three years, accumulating deficit of $1.3 billion More

Afghan Presidential Vote Audit Continues Despite Glitches

Process has been marred by walkouts by representatives of two competing candidates, Abdullah Abdullah and Ashraf Ghani 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.
Nature of Space Exploration Enters New Agei
X
Elizabeth Lee
July 20, 2014 2:36 AM
Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Nature of Space Exploration Enters New Age

Forty-five years ago this month, the first humans walked on the moon. It was during an era of the space race between the United States and the Soviet Union. World politics have changed since then and -- as Elizabeth Lee reports -- so has the nature of space exploration.
Video

Video Chicago’s Argonne Lab Developing Battery of the Future

In 2012, the U.S. Department of Energy’s Office of Science awarded a $120 million grant to a new technology center focused on battery development - headquartered at Argonne National Laboratory in suburban Chicago, Illinois. As VOA’s Kane Farabaugh reports, there scientists are making the next technological breakthroughs in energy storage.
Video

Video In NW Pakistan, Army Offensive Causes Massive Number of Displaced

Pakistan’s army offensive in North Waziristan has resulted in the large-scale displacement of the local population. VOA's Ayaz Gul reports from northwest Pakistan where authorities say around 80 percent of the estimated 1 million internally displaced persons [IDPs] have settled in Bannu district, while much of the remaining 20 percent are scattered in nearby cities.
Video

Video Kurdish Peshmerga Force Secures Kirkuk, Its Oil

The Kurdistan regional government has sent its Peshmerga troops into the adjacent province of Kirkuk to drive out insurgents, and to secure the area's rich oil fields. By doing this, the regional government has added a fourth province to the three it officially controls. The oil also provides revenue that could make an independent Kurdistan economically strong. VOA’s Jeffrey Young went out with the Peshmerga and filed this report.
Video

Video Malaysia Reeling: Second Air Disaster in Four Months

Malaysia is reeling from the second air disaster in four months involving the country’s flag carrier. Flight 340 vanished in March and despite an extensive search, no debris has been found. And on Thursday, Flight 17, likely hit by a surface-to-air missile, came apart over eastern Ukraine. The two incidents together have left more than 500 people dead. VOA Correspondent Steve Herman reports from Kuala Lumpur.
Video

Video Diplomatic Crisis Grows Over MH17 Plane Crash

The Malaysia Airlines crash in eastern Ukraine is drawing reaction from leaders around the world. With suspicions growing that a surface-to-air missile shot down the aircraft, there are increasing tensions in the international community over who is to blame. Henry Ridgwell reports for VOA from London.
Video

Video Undocumented Immigrants Face Perilous Journey to US, No Guarantees

Every day, hundreds of undocumented immigrants from Central America attempt the arduous journey through Mexico and turn themselves over to U.S. border patrol -- with the hope that they will not be turned away. But the dangers they face along the way are many, and as Ramon Taylor reports from the Rio Grande Valley in Texas, their fate rests on more than just the reception they get at the US border.
Video

Video Scientists Create Blackest Material Ever

Of all the black things in the universe only the infamous "black holes" are so black that not even a tiny amount of light can bounce back. But scientists have managed to create material almost as black, and it has enormous potential use. VOA’s George Putic has more.
Video

Video Fog Collector Transforming Maasai Water Harvesting in Kenya

The Maasai people of Kenya are known for their cattle-herding, nomadic lifestyle. But it's an existence that depends on access to adequate water for their herds and flocks. Lenny Ruvaga reports for VOA, on a "fog collector."

AppleAndroid