News / Europe

German, French Finance Chiefs Pledge Support for Greece Staying in Eurozone

German Finance Minister Wolfgang Schaeuble, left, and his new counterpart from France Pierre Moscovici brief the media after a meeting at the Finance Ministry in Berlin, May 21, 2012.
German Finance Minister Wolfgang Schaeuble, left, and his new counterpart from France Pierre Moscovici brief the media after a meeting at the Finance Ministry in Berlin, May 21, 2012.
VOA News
The German and French finance chiefs are pledging their support for efforts to keep Greece in the euro currency bloc, but remain at odds over creating a new way to help debt-ridden governments finance their operations.

German Finance Minister Wolfgang Schaeuble and his French counterpart, Pierre Moscovici, met in Berlin to prepare for an informal summit of European Union leaders Wednesday in Brussels.

Schaeuble said Germany and France want Greece to remain in the 17-nation euro bloc after a second round of Greek parliamentary elections next month.  But Schaeuble said a new Athens government must adhere to the austerity plan agreed to earlier this year in exchange for billions of dollars in new bailout funds.

"We completely agree that we have to stick with what we agreed with Greece and that we have to do everything," he said. "We want Greece to remain in the Euro-Union and want to do everything to reach that goal. During the past two years we have worked intensely, we agreed on a program for Greece. We know that Greece is in a difficult situation domestically, but we hope that the elections will enable Greece to contribute its part in reaching the mutual goal, with a government that is able to act.''

Schaeuble and Moscovici disagreed on a call by new French President Francois Hollande for the creation of eurobonds, debt jointly issued by the currency bloc as a way to boost economic growth throughout the region and cut the cost of borrowing for weaker governments.

Moscovici said it was important for the eurobond idea to be discussed by the heads of state at the Brussels meeting.

"We spoke about this, with both confirming a position that is already known," he said. "I also have to add that Francois Hollande wants to put everything on the table including subjects that can be agreed upon easily but also subjects that need to be examined closely, subjects that are contestable and might not be agreed upon.  But we will talk about this on Wednesday.  But for us it is a strong idea.  No one can be forced into it, but we will talk about it. The summit on Wednesday only makes sense if everything is on the table.  It will be an opportunity for the heads of state to talk about everything.''

Germany, with the eurozone's most robust economy and its lowest borrowing costs, has long resisted the sale of eurobonds. It says debtor governments like Greece, Italy and Spain and others must first control their spending. The German government says it is worried that jointly issued bonds would increase the very low interest rates Berlin pays.

The meeting between the two finance chiefs took place amid growing evidence that the German government is isolated in its focus on austerity measures aimed at cutting the deficits of the eurozone's debt-ridden governments.

The debate over eurozone economic policy is occurring as Greece's continued membership in the eurozone remains in question, with new national elections set for June 17 after a splintered vote earlier this month left the country's fractious parties unable to form a coalition government.

The caretaker Greek government said Friday that German Chancellor Angela Merkel proposed Greece also stage a referendum at the same time about whether to stay in the eurozone.  But Ms. Merkel's spokesman on Monday forcefully denied that she had made the suggestion.

You May Like

US Firms Concerned About China's New Cyber Regulations

New rules would require technology companies doing business in financial sector to hand over their source code, adopt Chinese encryption algorithms More

WHO Focus on Ebola Shifts to Ending Outbreak

Focus to be less on building facilities and more on efforts to find infected people, manage their cases, engage with communities and ensure proper burials More

US Scientist Who Conceived of Groundbreaking Laser Technology Dies

Charles Townes, Nobel laureate, laser co-creator paved way for other scientific discoveries: CDs, eye surgery, metal cutters to name a few technologies that rely on lasers More

This forum has been closed.
Comment Sorting
Comments
     
by: dialabank123 from: new delhi
May 25, 2012 3:51 AM
Hey this is really nice and informative post .. i always found this type of post bcoz these type of blogs always give me new ideas and information related finance and banking...! if anybody also found new ideas of banking and info related banking than they can visit : http://goo.gl/85fec

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
Super Bowl Ads Compete for Eyes on TV, Webi
X
January 29, 2015 9:58 AM
Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Super Bowl Ads Compete for Eyes on TV, Web

Super Bowl Sunday (Feb. 1) is about more than just the NFL's American football championship and big parties to watch the game. Viewers also tune in for the world famous commercials that send Facebook and Twitter abuzz. Daniela Schrier reports on the social media rewards for America’s priciest advertising.
Video

Video Theologians Cast Doubt on Morality of Drone Strikes

In 2006, stirred by photos of U.S. soldiers mistreating Iraqi prisoners, a group of American faith leaders and academics launched the National Religious Campaign Against Torture. It played an important role in getting Congress to investigate, and the president to ban, torture. VOA's Jerome Socolovsky reports.
Video

Video Freedom on Decline Worldwide, Report Says

The state of global freedom declined for the ninth consecutive year in 2014, according to global watchdog Freedom House's annual report released Wednesday. VOA's William Gallo has more.
Video

Video As Ground Shifts, Obama Reviews Middle East Strategy

The death of Saudi Arabia’s king, the collapse of a U.S.-friendly government in Yemen and a problematic relationship with Israel’s leadership are presenting a new set of complications for the Obama administration and its Middle East policy. Not only is the U.S. leader dealing with adversaries in Iran, the Islamic State and al-Qaida, but he is now juggling trouble with traditional allies, as White House correspondent Luis Ramirez reports.
Video

Video MRI Seems to Help Diagnose Prostate Cancer, Preliminary Study Shows

Just as with mammography used to detect breast cancer, there's a lot of controversy about tests used to diagnose prostate cancer. Fortunately, a new study shows doctors may now have a more reliable way to diagnose prostate cancer for high risk patients. More from VOA's Carol Pearson.
Video

Video Smartphones About to Make Leap, Carry Basic Senses

Long-distance communication contains mostly sounds and pictures - for now. But scientists in Britain say they are close to creating additions for our smartphones that will make it possible to send taste, smell and even a basic touch. VOA’s George Putic reports.
Video

Video NASA Monitors Earth’s Vital Signs From Space

The U.S. space agency, NASA, is wrapping up its busiest 12-month period in more than a decade, with three missions launched in 2014 and two this month, one in early January and the fifth scheduled for January 29. As VOA’s Rosanne Skirble reports, the instruments being lifted into orbit are focused on Earth’s vital life support systems and how they are responding to a warmer planet.
Video

Video Saved By a Mistake - an Auschwitz Survivor's Story

Dagmar Lieblova was 14 when she arrived at Auschwitz in December 1943, along with her entire Czech Jewish family. All of them were to die there, but she was able to leave after several months due to a bureaucratic mix-up which saved her life. Now 85, with three children and six grandchildren, she says she has a feeling of victory. This report by Ahmad Wadiei and Farin Assemi, of RFE/RL's Radio Farda is narrated by RFE’s Raymond Furlong.

Circumventing Censorship

An Internet Primer for Healthy Web Habits

As surveillance and censoring technologies advance, so, too, do new tools for your computer or mobile device that help protect your privacy and break through Internet censorship.
More

All About America

AppleAndroid