News / Europe

    European Leaders Pressed to Deliver at Crisis Summit

    European leaders are gathering in Brussels for a critical end-of-year summit, another attempt to resolve a sovereign debt and banking crisis threatening the very future of the euro currency union.  Pressure is on for them to come out with a definitive deal this time around, after what critics claim are months of half-measures.

    This is not the first time a European Union summit has been described as the last chance to save the struggling euro currency union.  But the 27 EU leaders gathering Thursday and Friday in Brussels face extraordinary pressure, at home and abroad,to deliver a lasting solution to the two-year-old eurozone crisis.

    The plan on the table is authored by Europe's two biggest economies, France and Germany.  They want to overhaul EU treaties to forge a more binding and fiscally responsible eurozone. The two leaders outlined the details of their vision on Wednesday, in a letter to EU President Herman van Rompuy.

    Watch related report by Al Pessin:

    At a joint press conference with his German counterpart Angela Merkel earlier this week, French President Nicolas Sarkozy said the crisis has given the two countries an extra reason for unity.  He said both countries envision the same kind of Europe.

    But their plan must still be accepted by the other 25 EU members or at very least, the 17 members of the eurozone.  And that, says analyst Philippe Moreau Defarges, of the French Institute of International Relations, is not at all certain.

    "There will be a very strong pressure to accept this deal.  Not only from the eurozone members, but also outside the eurozone," he said. "I think the British should back this agreement.  But it will be difficult. "

    British Prime Minister David Cameron, whose country is not part of the euro currency union, has already expressed reservations.  He told British TV his first priority at the summit will be to defend British interests.

    "Eurozone countries do need to come together, do need to do more things together.  If they choose to use the European treaty to do that, Britain will be insisting on some safeguards too.  And as long as we get those, then that treaty can go ahead," said Cameron. "If we cannot get those, it will not."

    BNP Parisbas bank economist Shahin Vallee, a visiting fellow at Brussels economic think-tank Bruegel, does not think any deal reached will be enough.

    "I think not, unfortunately.  I think this proposal rests on the idea that with stronger fiscal rules and more automaticity of those rules the euro area will be stronger and financial markets will be comforted and have more belief in the long term sustainability of the euro area, and I think this is an illusion," said Vallee.

    French analyst Moreau Defarges also has his doubts about the French-German plan.

    "It is a very partial, a very institutional, a very budgetary and fiscal answer to the euro crisis.  The euro crisis is a growth crisis, a problem of growth," said Defarges. "Will the European Union find a new path toward growth?  That is the key question."

    Even if the other EU countries accept the French-German plan, it will take months, if not years, to fully implement it, because it may require amending EU treaties.  Analysts like Vallee say Europe's crisis needs immediate action.

    "I think the right solution  would be to have a more ambitious treaty change, take the necessary time to negotiate the provisions of this new treaty, while at the same time doing something that is immediately operational to respond to the crisis and the urgency of the crisis," noted Vallee.

    Adding to the pressure, ratings agency Standard & Poor's has threatened to downgrade the credit rating of 15 eurozone members, including heavyweights France and Germany.  There are fears the crisis could spread overseas, slowing growth in Africa and Asia and threatening America's fragile recovery.

    U.S. Treasury Secretary Timothy Geithner has been meeting with top officials and heads of state in Europe this week, underscoring Washington's concern.

    "I am here in Europe, of course, to emphasize how important it is to the United States, and to the world economy as a whole, that Germany and France succeed alongside the other nations of Europe in building a stronger Europe," said Geithner.

    The eurozone crisis has rekindled longstanding debates on whether the European Union should head toward more unity, economically and politically or does the crisis underscore the failure of European integration?  Vallee believes resolving these and other EU visions is also critical to resolving the eurozone crisis.

    You May Like

    US Leaders Who Served in Vietnam War Look Back and Ahead

    In New York Times opinion piece, Secretary of State John Kerry, Senator John McCain and former Senator Bob Kerrey say as US strengthens relations with Vietnam, it is important to remember lessons learned from war

    Who Are US Allies in Fight Against Islamic State?

    There is little but opportunism keeping coalition together analysts warn — SDFs Arab militias are not united even among themselves, frequently squabble and don’t share Kurds' vision for post-Assad Syria

    Learning Foreign Language Helps US Soldiers Bridge Culture Gap

    Effective interaction with local populations part of everyday curriculum at Monterey, California, Defense Language Institute

    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-American Youth Optimistic About Obama's Visit to Vietnami
    X
    Elizabeth Lee
    May 22, 2016 6:04 AM
    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video Vietnamese-American Youth Optimistic About Obama's Visit to Vietnam

    U.S. President Barack Obama's visit to Vietnam later this month comes at a time when Vietnam is seeking stronger ties with the United States. Many Vietnamese Americans, especially the younger generation, are optimistic Obama’s trip will help further reconciliation between the two former foes. Elizabeth Lee has more from the community called "Little Saigon" located south of Los Angeles.
    Video

    Video First-generation, Afghan-American Student Sets Sights on Basketball Glory

    Their parents are immigrants to the United States. They are kids who live between two worlds -- their parents' homeland and the U.S. For many of them, they feel most "American" at school. It can be tricky balancing both worlds. In this report, produced by Beth Mendelson, Arash Arabasadi tells us about one Afghan-American student who seems to be coping -- one shot at a time.
    Video

    Video Newest US Citizens, Writing the Next Great Chapter

    While universities across the United States honor their newest graduates this Friday, many immigrants in downtown Manhattan are celebrating, too. One hundred of them, representing 31 countries across four continents, graduated as U.S. citizens, joining the ranks of 680,000 others every year in New York and cities around the country.
    Video

    Video Vietnam Sees Strong Economic Growth Despite Incomplete Reforms

    Vietnam has transformed its communist economy to become one of the world's fastest-growing nations. While the reforms are incomplete, multinational corporations see a profitable future in Vietnam and have made major investments -- as VOA's Jim Randle reports.
    Video

    Video Qatar Denies World Cup Corruption

    The head of Qatar’s organizing committee for the 2022 World Cup insists his country's bid to host the soccer tournament was completely clean, despite the corruption scandals that have rocked the sport’s governing body, FIFA. Hassan Al-Thawadi also said new laws would offer protection to migrants working on World Cup construction projects. VOA's Henry Ridgwell reports.
    Video

    Video Infrastructure Funding Puts Cambodia on Front Line of International Politics

    When leaders of the world’s seven most developed economies meet in Japan next week, demands for infrastructure investment world wide will be high on the agenda. Japanese Prime Minister Shinzo Abe’s push for “quality infrastructure investment” throughout Asia has been widely viewed as a counter to the rise of Chinese investment flooding into region.
    Video

    Video Democrats Fear Party Unity a Casualty in Clinton-Sanders Battle

    Democratic presidential front-runner Hillary Clinton claimed a narrow victory in Tuesday's Kentucky primary even as rival Bernie Sanders won in Oregon. Tensions between the two campaigns are rising, prompting fears that the party will have a difficult time unifying to face the presumptive Republican nominee, Donald Trump. VOA national correspondent Jim Malone has more from Washington.
    Video

    Video Portrait of a Transgender Marriage: Husband and Wife Navigate New Roles

    As controversy continues in North Carolina over the use of public bathrooms by transgender individuals, personal struggles with gender identity that were once secret are now coming to light. VOA’s Tina Trinh explored the ramifications for one couple as part of trans.formation, a series of stories on transgender issues.
    Video

    Video Amerikan Hero Flips Stereotype of Middle Eastern Character

    An Iranian American comedian is hoping to connect with American audiences through a film that inverts some of Hollywood's stereotypes about Middle Eastern characters. Sama Dizayee reports.
    Video

    Video Budding Young Inventors Tackle City's Problems with 3-D Printing

    Every city has problems, and local officials and politicians are often frustrated by their inability to solve them. But surprising solutions can come from unexpected places. Students in Baltimore. Maryland, took up the challenge to solve problems they identified in their city, and came up with projects and products to make a difference. VOA's June Soh has more on a digital fabrication competition primarily focused on 3-D design and printing. Carol Pearson narrates.

    Special Report

    Adrift The Invisible African Diaspora