News / Europe

Sarkozy Says France, Germany Will Offer Debt Crisis Plan

French President Nicolas Sarkozy delivers a speech on the European debt crisis on December 1, 2011 in Toulon, southeastern France.
French President Nicolas Sarkozy delivers a speech on the European debt crisis on December 1, 2011 in Toulon, southeastern France.

French President Nicolas Sarkozy says that France and Germany will offer a new plan next week to rescue Europe from its debt crisis to save the common euro currency.

Mr. Sarkozy said Thursday night that he and German Chancellor Angela Merkel, the leaders of Europe's two biggest economies, would make proposals on Monday to "guarantee the future of Europe."  He said that "Europe must be refounded."  Ms. Merkel plans to lay out her vision for ending the continent's two-year-long debt crisis in a speech to the German Parliament on Friday.

The French leader, facing a tough re-election contest next April, spoke to his countrymen from the Mediterranean port of Toulon.  He said that France and Germany, "after so many tragedies, decided to unite their destiny, to look to the future together."  He said that to do otherwise "would be inexcusable."

Mr. Sarkozy offered few details of the shape of a new Europe, but said the two countries would push for a new agreement to replace the 1992 Maastricht Treaty that created the European Union and led to the advent of the euro in 1999.  It is now the currency for 17 nations, but Mr. Sarkozy said there could be no common currency without "economic convergence," an apparent reference to greater central control over the budgets of individual eurozone nations.

Any treaty changes would have to be approved by all 27 EU members, 10 of which have their own currencies.

Meanwhile, European Central Bank President Mario Draghi said earlier Thursday that the bank might give new assistance to the continent's debt-ridden governments, but only if the eurozone countries first adopt "a new fiscal compact" to control the spending of individual countries.

Draghi said more centralized oversight of budgets was "the most important element" for the eurozone nations to adopt before the bank would consider increasing its current limited purchases of government debt..

"Companies, markets and the citizens of Europe expect policy-makers to act decisively to resolve the crisis.  It is time to adapt the euro area design with a set of institutions, rules and processes that is commensurate with the requirements of monetary union," Draghi said.

The European debt crisis has threatened the survival of the continent's monetary union, with some analysts suggesting that the demise of the euro would send the world economy into a recessionary tailspin.  The eurozone economy is struggling, with one new report by the financial information firm Markit showing that manufacturing fell to a 28-month low in November.

The long reach of the debt crisis touched Greece and Spain on Thursday.  Greek unions took to the streets in Athens in a 24-hour protest of the austerity policies supported by the caretaker government of new Prime Minister Lucas Papademos.  Spain raised more than $5 billion in new funding, but it had to pay its highest interest rate in at least six years.

Stock markets in Asia soared Thursday, continuing a global rally after the world's major central banks took coordinated steps Wednesday to support Europe's troubled economy.  European and U.S. markets traded in a narrow range one day after recording huge gains on the central banks' cut in the cost of borrowing U.S. dollars.

Shares in Japan's Nikkei average closed up nearly two percent, while Hong Kong's Hang Sang Index surged more than 5.5 percent.

Some information for this report provided by AFP.

You May Like

Lion Cecil's Killing Sparks 'Canned Hunting' Debate in S. Africa

Conservationists believe incident, which triggered worldwide outrage, will reshape debate about practice in which hunters are allowed to target animals bred for hunting More

Taliban's New Leader Says Jihad Will Continue

Top US Afghan diplomat also meets with Pakistani, Afghan officials following news of Mullah Omar's death More

Environmentalists Issue Warning on Mekong Biodiversity

Scientists say decades of economic development, hydropower-dam construction, lax law enforcement and trafficking have taken their toll 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.
Astronauts Train Underwater for Deep Space Missionsi
|| 0:00:00
...    
🔇
X
George Putic
July 30, 2015 8:59 PM
Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Astronauts Train Underwater for Deep Space Missions

Manned deep space missions are still a long way off, but space agencies are already testing procedures, equipment and human stamina for operations in extreme environment conditions. Small groups of astronauts take turns in spending days in an underwater lab, off Florida’s southern coast, simulating future missions to some remote world. VOA’s George Putic reports.
Video

Video Civil Rights Leaders Struggled to Achieve Voting Rights Act

Fifty years ago, lawmakers approved, and U.S. President Lyndon Johnson signed, the Voting Rights Act of 1965. The measure outlawed racial discrimination in voting, giving millions of blacks in many parts of the southern United States federal enforcement of the right to vote. Correspondent Chris Simkins introduces us to some civil rights leaders who were on the front lines in the struggle for voting rights.
Video

Video Booming London Property a ‘Haven for Dirty Money’

Billions of dollars of so-called ‘dirty money’ from the proceeds of crime - especially from Russia - are being laundered through the London property market, according to anti-corruption activists. As Henry Ridgwell reports from the British capital, the government has pledged to crack down on the practice.
Video

Video Hometown of Boy Scouts of America Founder Reacts to Gay Leader Decision

Ottawa, Illinois, is the hometown of W.D. Boyce, who founded the Boy Scouts of America in 1910. In Ottawa, where Scouting remains an important part of the legacy of the community, the end of the organization's ban on openly gay adult leaders was seen as inevitable. VOA's Kane Farabaugh reports.
Video

Video 'Metal Muscles' Flex a New Bionic Hand

Artificial limbs, including the most complex of them – the human hand – are getting more life-like and useful due to constant advances in tiny hydraulic, pneumatic and electric motors called actuators. But now, as VOA’s George Putic reports, scientists in Germany say the future of the prosthetic hand may lie not in motors but in wires that can ‘remember’ their shape.
Video

Video Russia Accused of Abusing Interpol to Pursue Opponents

A British pro-democracy group has accused Russia of abusing the global law enforcement agency Interpol by requesting the arrest and extradition of political opponents. A new report by the group notes such requests can mean the accused are unable to travel and are often unable to open bank accounts. VOA's Henry Ridgwell reports.
Video

Video 'Positive Atmosphere' Points Toward TPP Trade Deal in Hawaii

Talks on a major new trade agreement among 12 Pacific Rim nations are said to be nearing completion in Hawaii. Some trade experts say the "positive atmosphere" at the discussions could mean a deal is within reach, but there is still hard bargaining to be done over many issues and products, including U.S. drugs and Japanese rice. VOA's Jim Randle reports.
Video

Video Genome Initiative Urgently Moves to Freeze DNA Before Species Go Extinct

Earth is in the midst of its sixth mass extinction. The last such event was caused by an asteroid 66 million years ago. It killed off the dinosaurs and practically everything else. So scientists are in a race against time to classify the estimated 11 million species alive today. So far only 2 million are described by science, and researchers are worried many will disappear before they even have a name. VOA’s Rosanne Skirble reports.
Video

Video Scientists: One-Dose Malaria Cure is Possible

Scientists have long been trying to develop an effective protection and cure for malaria - one of the deadliest diseases that affects people in tropical areas, especially children. As the World Health Organization announces plans to begin clinical trials of a promising new vaccine, scientists in South Africa report that they too are at an important threshold. George Putic reports, they are testing a compound that could be a single-dose cure for malaria.
Video

Video 'New York' Magazine Features 35 Cosby Accusers

The latest issue of 'New York' magazine features 35 women who say they were drugged and raped by film and television celebrity Bill Cosby. The women are aged from 44 to 80 and come from different walks of life and races. The magazine interviewed each of them separately, but Zlatica Hoke reports their stories are similar.
Video

Video US Calls Fight Against Human Trafficking a Must Win

The United States is promising not to give up its fight against what Secretary of State John Kerry calls the “scourge” of modern slavery. Officials released the country’s annual human trafficking report Monday – a report that’s being met with some criticism. VOA’s National Security correspondent Jeff Seldin has more from the State Department.
Video

Video Washington DC Underground Streetcar Station to Become Arts Venue

Abandoned more than 50 years ago, the underground streetcar station in Washington D.C.’s historic DuPont Circle district is about to be reborn. The plan calls for turning the spacious underground platforms - once meant to be a transportation hub, - into a unique space for art exhibitions, presentations, concerts and even a film set. Roman Mamonov has more from beneath the streets of the U.S. capital. Joy Wagner narrates his report.
Video

Video Europe’s Twin Crises Collide in Greece as Migrant Numbers Soar

Greece has replaced Italy as the main gateway for migrants into Europe, with more than 100,000 arrivals in the first six months of 2015. Many want to move further into Europe and escape Greece’s economic crisis, but they face widespread dangers on the journey overland through the Balkans. VOA's Henry Ridgwell reports.
Video

Video Stink Intensifies as Lebanon’s Trash Crisis Continues

After the closure of a major rubbish dump a week ago, the streets of Beirut are filling up with trash. Having failed to draw up a plan B, politicians are struggling to deal with the problem. John Owens has more for VOA from Beirut.
Video

Video Paris Rolls Out Blueprint to Fight Climate Change

A U.N. climate conference in December aims to produce an ambitious agreement to fight heat-trapping greenhouse gases. But many local governments are not waiting, and have drafted their own climate action plans. That’s the case with Paris — which is getting special attention, since it’s hosting the climate summit. Lisa Bryant takes a look for VOA at the transformation of the French capital into an eco-city.

VOA Blogs