News / Europe

Europe Fights for Euro's Survival

The 17 countries which use the euro as a form of currency might be forced to cede control of their sovereign spending to a central authority.
The 17 countries which use the euro as a form of currency might be forced to cede control of their sovereign spending to a central authority.

European finance ministers gathered in Brussels Tuesday in another effort to resolve the continent's debt crisis and save the euro as its common currency.

The ministers appeared set to negotiate terms of proposals that would have - until recently - been unthinkable. They could force the 17 countries that use the euro to cede control of their sovereign spending to a central authority.

An elite group of financially stable European countries, including Germany and France, could also guarantee each other's debts to cut some of their borrowing costs. But that would further isolate Europe's debt-ridden countries.

Fears for the euro's survival intensified as borrowing costs for debt-plagued Italy, the eurozone's third largest economy, shot to the highest point since the 1999 advent of the currency.

Italy was forced to pay nearly eight percent interest on a three-year bond, well above the seven percent threshold that forced Greece, Ireland and Portugal to secure international bailouts in the last year and a half.

Meanwhile, Britain, with a large economy and its own currency, cut projections for the growth of its economy this year and next. Chancellor of the Exchequer George Osborne said the country's budget deficit will be worse than originally predicted, and that more spending cuts will be needed.

As Europe's debt crisis has worsened, some analysts and European officials have acknowledged that the monetary union could collapse, or that weaker governments could leave the bloc.

That also could trigger a worldwide recession, leading to new economic difficulties for the United States, the world's largest economy.

Polish Foreign Minister Radek Sikorski said a eurozone collapse would be "apocalyptic."

The Organization for Economic Cooperation and Development said Monday that the European Central Bank needs to sharply increase its purchase of bonds from European governments to cut their borrowing costs and ease their funding problems.

But Germany has adamantly opposed an increased role for the continent's central bank, saying that some countries, like Germany, would then lose their top credit ratings.

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