News / Europe

    German, French Leaders Call for Quick Action on Debt Crisis

    French President Nicolas Sarkozy, left, smiles as he greets German Chancellor Angela Merkel prior to their meeting at the Elysee Palace in Paris, December 5, 2011.
    French President Nicolas Sarkozy, left, smiles as he greets German Chancellor Angela Merkel prior to their meeting at the Elysee Palace in Paris, December 5, 2011.

    Germany and France are pressing their case that European leaders need to act quickly to resolve the continent's debt crisis and save the common euro currency.

    German Chancellor Angela Merkel and French President Nicolas Sarkozy detailed their plan Wednesday to end the two-year debt contagion in a letter to European Council President Herman Van Rompuy, a day ahead of a European Union summit in Brussels. The German and French leaders called for automatic penalties against governments that violate budget limits, a unified corporate tax rate and a new financial transaction tax.

    Merkel and Sarkozy, who oversee Europe's two strongest economies, said they are "convinced that we need to act without delay." They said new EU treaty provisions should be ready for adoption by March.

    But even as they pushed for broad European oversight of individual government budgets, news agencies quoted an unnamed senior German government source as saying that he is more pessimistic than a week ago that all 27 EU nations will agree to treaty changes. More likely, he said, is that the 17-nation bloc that uses the euro might agree to more centralized authority over budgets.

    Britain, with its own currency (the pound), says it is worried about handing control over its spending to a new European-wide authority. That could make a Europe-wide debt resolution more difficult to achieve.

    Some analysts say the survival of the continent's 12-year monetary union is at stake at the summit. Economists worry that the world economy could plunge into a new recession if the European debt crisis is not resolved.

    U.S. Treasury Secretary Timothy Geithner, fearful of the effects of a euro collapse on the fragile American economy, is on a three-day trip to European capitals to prod officials to adopt strong measures.

    After meeting with French Finance Minister Francois Baroin in Paris, Geithner expressed confidence that the European officials will move to control government spending, create new economic growth and calm jittery financial markets worried about governments defaulting on their debts.

    "The minister and I just had a very good and constructive discussion," said Geithner. "We have a very strong, productive relationship, a lot of confidence in what the president of France and what the minister are doing working with Germany, trying to build a stronger Europe.

    "As I said yesterday, we were encouraged by the progress they are making, not just to put in place the economic reforms across Europe to create the conditions for stronger growth in the future, but to try to build a stronger architecture for a fiscal union, a fiscal compact, he continued, "and as the minister said, try to make sure there is a sufficiently strong firewall in place to help support those efforts."

    Credit agency Standard & Poor's this week put 15 of the 17 nations that use the euro, including Germany and France, on a negative credit watch. It also warned it may downgrade the top rating of the bailout fund for Europe's debt-ridden countries. Greece, Ireland and Portugal have all already needed international bailouts, with analysts fearing that Italy and Spain, the continent's third and fourth largest countries, also might need help.

    The credit rating agency has criticized European officials for "a very slow and reluctant response" to the continent's debt crisis. It has also expressed skepticism that European leaders would act decisively at the summit.

    One British bookmaker has adopted a similar outlook, offering gamblers three-to-one odds that the euro will cease to exist by the end of 2012.

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

    You May Like

    Video Rubio Looks to Surge in New Hampshire

    Republican presidential candidate has moved into second place in several recent surveys and appears to be gaining ground on longtime frontrunner Donald Trump

    UN Calls for Global Ban on Female Genital Mutilation

    Recent UNICEF report finds at least 200 million girls and women alive today have undergone female genital mutilation in 30 countries

    UN Pilots New Peace Approach in CAR

    Approach launched in northern town of Kaga Bandoro, where former combatants of mainly Muslim Seleka armed group and Christian and animist anti-Balaka movement are being paid to do community work

    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.
    German Artists to Memorialize Refugees With Life Jacket Exhibiti
    X
    Hamada Elsaram
    February 05, 2016 4:30 PM
    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video German Artists to Memorialize Refugees With Life Jacket Exhibit

    Sold in every kind of shop in some Turkish port towns, life jackets have become a symbol of the refugee crisis that brought a million people to Europe in 2015.  On the shores of Lesbos, Greece, German artists collect discarded life jackets as they prepare an art installation they plan to display in Germany.  For VOA, Hamada Elrasam has this report from Lesbos, Greece.
    Video

    Video E-readers Help Ease Africa's Book Shortage

    Millions of people in Africa can't read, and there's a chronic shortage of books. A non-profit organization called Worldreader is trying to help change all that one e-reader at a time. VOA’s Deborah Block tells us about a girls' school in Nairobi, Kenya where Worldreader is making a difference.
    Video

    Video Genius Lets World Share Its Knowledge

    Inspired by crowdsourcing companies like Wikipedia, Genius allows anyone to edit anything on the web, using its web annotation tool
    Video

    Video Former Drug CEO Martin Shkreli Angers US Lawmakers

    A former U.S. pharmaceutical business executive has angered lawmakers by refusing to explain why he raised the price of a life-saving pill by 5,000 percent. Martin Shkreli was removed from a congressional hearing on Thursday after citing his Fifth Amendment right to stay silent. Zlatica Hoke has more.
    Video

    Video Super Bowl TV Commercials are Super Business for Advertisers

    The Super Bowl, the championship clash between the two top teams in American Football, is the most-watched sporting event of the year, and advertisers are lining up and paying big bucks to get their commercials on the air. In fact, the TV commercials during the Super Bowl have become one of the most anticipated and popular features of the event. VOA's Brian Allen has a sneak peek of what you can expect to see when the big game goes to commercial break, and the real entertainment begins.
    Video

    Video In Philippines, Mixed Feelings About Greater US Military Presence

    In the Philippines, some who will be directly affected by a recent Supreme Court decision clearing the way for more United States troop visits are having mixed reactions.  The increased rotations come at a time when the Philippines is trying to build up its military in the face of growing maritime assertiveness from China.  From Bahile, Palawan on the coast of the South China Sea, Simone Orendain has this story.
    Video

    Video Microcephaly's Connection to Zika: Guilty Until Proven Innocent

    The Zika virus rarely causes problems for the people who get it, but it seems to be having a devastating impact on babies whose mothers are infected with Zika. VOA's Carol Pearson has more.
    Video

    Video Solar Innovation Provides Cheap, Clean Energy to Kenya Residents

    In Kenya, a company called M-Kopa Solar is providing clean energy to more than 300,000 homes across East Africa by allowing customers to "pay-as-you-go" via their cell phones. As Lenny Ruvaga reports from Kangemi, customers pay a small deposit for a solar unit and then pay less than a dollar a day to get clean energy to light up their homes or businesses.
    Video

    Video Stunning Artworks Attract Record Crowds, Thanks to Social Media

    A new exhibit at the oldest art museum in America is shattering attendance records. Thousands of visitors are lining up to see nine giant works of art that have gotten a much-deserved shot of viral marketing. The 150-year-old Smithsonian American Art Museum has never had a response quite like this. VOA's Julie Taboh reports.
    Video

    Video Apprenticeships Put Americans on Path Back to Work

    Trying to get more people into the U.S. workforce, the Obama administration last year announced $175 million in grants towards apprenticeship programs. VOA White House correspondent Aru Pande went inside one training center outside of Washington that has gained national recognition for helping put people on the path to employment.
    Video

    Video New Material May Reduce Concussion Effects

    As the 2016 National Football League season reaches its summit at the Super Bowl this coming Sunday (2/7), scientists are trying to learn how to more effectively protect football players from dangerous and damaging concussions. Researchers at Cardiff and Cambridge Universities say their origami-based material may solve the problem. VOA’s George Putic reports.
    Video

    Video Saudi Arabian Women's Sports Chip Away at Stereotypes

    Saudi Arabian female athletes say that sports are on the front line of busting traditions that quash women’s voices, both locally and internationally. In their hometown of Jeddah, a group of basketball players say that by connecting sports to health issues, they are encouraging women and girls to get out of their homes and participate in public life. VOA’s Heather Murdock reports.
    Video

    Video A Year Later, Fortunes Mixed for Syrians Forging New Lives in Berlin

    In April of last year, VOA followed the progress of six young Syrian refugees -- four brothers and their two friends -- as they made their way from Libya to Italy by boat, and eventually to Germany. Reporter Henry Ridgwell caught up with the refugees again in Berlin, as they struggle to forge new lives amid the turmoil of Europe's refugee crisis.
    Video

    Video Zika Virus May be Hard to Stop

    With the Zika virus spreading rapidly, the World Health Organization Monday declared Zika a global health emergency. As Alberto Pimienta reports, for many governments and experts, the worst is yet to come.