News / Europe

Germany Pessimistic About Broad European Debt Resolution

A trader reads at Madrid's bourse as euro gave up gains on comments from a senior German official who dampened optimism that European leaders will take decisive steps to contain the region's debt crisis at this week's summit, in Madrid, Spain, December 7,
A trader reads at Madrid's bourse as euro gave up gains on comments from a senior German official who dampened optimism that European leaders will take decisive steps to contain the region's debt crisis at this week's summit, in Madrid, Spain, December 7,

Germany, Europe's economic leader, is voicing new pessimism that a broad agreement will be reached at a European Union summit this week to resolve the continent's debt crisis.

News agencies quoted an unnamed senior German government source Wednesday as saying that he is more pessimistic than a week ago that all 27 EU nations will agree to treaty changes to enforce spending controls on individual governments. 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.

Fears grow ahead of summit

Leaders of the EU countries are set to meet Thursday and Friday in Brussels, with some analysts saying the survival of the continent's 12-year monetary union is at stake.

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. 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," said Geithner. "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. And as the minister said, try to make sure there is a sufficiently strong firewall in place to help support those efforts."

Budgets and bailouts

German Chancellor Angela Merkel and French President Nicolas Sarkozy unveiled a plan Monday for tighter controls over the budgets in the eurozone, with penalties imposed for overspending.

Credit agency Standard & Poor's this week put 15 of the 17 nations that use the euro, including economic powerhouses 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 all have 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 also has 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

Ukraine Purges Interior Ministry Leadership With Pro-Russian Ties

Interior Minister Avakov says 91 people 'in positions of leadership' have been fired, including 8 generals found to have links to past pro-Moscow governments More

US Airlines Point to Additional Problems of any Ebola Travel Ban

Airline officials note that even under travel ban, they may not be able to determine where passenger set out from, as there are no direct flights from Liberia, Guinea or Sierra Leone More

Nigerian President to Seek Another Term

Goodluck Jonathan has faced intense criticism for failing to stop Boko Haram militants 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.
Talks to Resume on Winter Gas for Ukrainei
X
Al Pessin
October 25, 2014 4:21 PM
Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Talks to Resume on Winter Gas for Ukraine

Ukrainian and Russian officials will meet again next week in an effort to settle their dispute over natural gas supplies that threatens to leave Ukraine short of heating fuel for the coming winter. VOA’s Al Pessin reports from London the dispute is complex, and has both economic and geopolitical dimensions.
Video

Video Smugglers Offer Cheap Passage From Turkey to Syria

Smugglers in Turkey offer a relatively cheap passage across the border into Syria. Ankara has stepped up efforts to stem the flow of foreign fighters who want to join Islamic State militants fighting for control of the Syrian border city of Kobani. But porous borders and border guards who can be bribed make illegal border crossings quite easy. Zlatica Hoke has more.
Video

Video China Political Meeting Seeks to Improve Rule of Law

China’s communist leaders will host a top level political meeting this week, called the Fourth Plenum, and for the first time in the party’s history, rule of law will be a key item on the agenda. Analysts and Chinese media reports say the meetings could see the approval of long-awaited measures aimed at giving courts more independence and include steps to enhance an already aggressive and high-reaching anti-corruption drive. VOA’s Bill Ide has more from Beijing.
Video

Video After Decades of Pressure, Luxembourg Drops Bank Secrecy Rules

European Union finance ministers have reached a breakthrough agreement that will make it more difficult for tax cheats to hide their money. The new legislation, which had been blocked for years by countries with a reputation as tax havens, was approved last week after Luxembourg and Austria agreed to lift their vetoes. But as Mil Arcega reports, it doesn’t mean tax cheats have run out of places to keep their money hidden.
Video

Video Kobani Refugees Welcome, Turkey Criticizes, US Airdrop

Residents of Kobani in northern Syria have welcomed the airdrop of weapons, ammunition and medicine to Kurdish militia who are resisting the seizure of their city by Islamic State militants. The Turkish government, however, has criticized the operation. VOA’s Scott Bobb reports from southeastern Turkey, across the border from Kobani.
Video

Video US ‘Death Cafes’ Put Focus on the Finale

In contemporary America, death usually is a topic to be avoided. But the growing “death café” movement encourages people to discuss their fears and desires about their final moments. VOA’s Jerome Socolovsky reports.
Video

Video Ebola Orphanage Opens in Sierra Leone

Sierra Leone's first Ebola orphanage has opened in the Kailahun district. Hundreds of children orphaned since the beginning of the Ebola outbreak face stigma and rejection with nobody to care for them. Adam Bailes reports for VOA about a new interim care center that's aimed at helping the growing number of children affected by Ebola.

All About America

AppleAndroid