News / Europe

Europe Moves Closer to Expanding Greek Bailout

German Chancellor Angela Merkel and the Prime Minister of Greece, Georgios Papandreou shake hands prior to a dinner at the chancellery in Berlin, Germany, Sept. 27, 2011.
German Chancellor Angela Merkel and the Prime Minister of Greece, Georgios Papandreou shake hands prior to a dinner at the chancellery in Berlin, Germany, Sept. 27, 2011.

Stock markets are rallying in expectation that European governments are finally committed to a comprehensive solution to their spreading debt crisis.  Two of the most reluctant countries - Germany and Finland - are expected to vote this week for expanding a key bailout fund. 

Time is running out for Greece to receive more bailout funds to avoid defaulting on its debt. But expectations are also rising that European governments are finally responding to calls that they take bigger and bolder steps to tackle a spreading financial crisis in the 17 nations sharing the euro currency.

In the coming days, European and International Monetary Fund officials will be assessing Greece's progress toward pushing through tough austerity measures in return for more funds.  Analysts and markets are also zeroing in on Germany, Europe's biggest economy, where opposition has been growing about bailing out Greece and other debt-strapped countries.

But there is a widespread expectation the German parliament will back expanding the European Union's bailout fund during a crucial vote, Thursday.

Underscoring the importance of German support, Greek Prime Minister George Papandreou held talks with German leader Angela Merkel on Tuesday.  He also appealed for help, in an address to German industries.

"This crisis must unite us to make Europe a stronger Europe - one that lives up to the common aspirations of our citizens.  I am confident that Greece will have undergone this same remarkable transformation achieve in Germany during the early 1990s.  What we are doing is nothing short than the rebirth of a nation," he said.

News reports suggest a larger plan for dealing with the debt crisis is being crafted.  But European officials have dampened those expectations.  And, a number of eurozone governments have yet to ratify a July decision to expand the bailout fund, which they need to do within weeks.

Even if they do, analysts like Simon Tilford, of the Center for European Reform in London, say the expanded fund will not be enough to deal with debt problems in bigger economies, like Italy.

"I think that, at this juncture, they're certainly far behind the curve," he said. "They obviously need to agree to what they signed up to in July.  But that's not going to be anywhere near enough to prevent the crisis deepening and perhaps barreling out of control."

The United States and other countries are increasingly concerned that Europe's debt crisis will have far-reaching effects. President Barack Obama and his administration have been pressing European leaders for tougher action.

"They have not fully healed from the crisis back in 2007 and never fully dealt with all the challenges that their banking system faced.  It's now being compounded with what's been happening in Greece.  So they're now going through a financial crisis that is scaring the world," he said.

Underscoring the international concern, Japan's finance minister has suggested his government might help in bailing out Greece - if European leaders draft a plan that will calm the markets.

You May Like

How to Safeguard Your Mobile Privacy

As the digital world becomes more mobile, so too do concerns about eroding privacy and increased hacking More

'Desert Dancer' Chronicles Iranian Underground Dance Troupe

Film by Richard Raymond is based on true story of Afshin Ghaffarian and his friends More

Audio Top 5 Songs for Week Ending May 23

This week's lineup can be summed up like this: 'It's The Same Old Song' - but they're great songs - featuring Walk The Moon, The Weeknd, Wiz Khalifa and Charlie Puth 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.
Female American Soldiers: Healing Through Filmmakingi
X
Bernard Shusman
May 24, 2015 2:55 PM
According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Female American Soldiers: Healing Through Filmmaking

According to the United States Defense Department, there are more than 200-thousand women serving in the U.S. Armed Forces.  Like their male counterparts, females have experiences that can be very traumatic.  VOA's Bernard Shusman tells us about a program that is helping some American women in the military heal through filmmaking.
Video

Video Rolling Thunder Run Reveals Changed Attitudes Towards Vietnam War

For many US war veterans, the Memorial Day holiday is an opportunity to look back at a divisive conflict in the nation’s history and to remember those who did not make it home.
Video

Video Millions Flock to Ethiopia Polls

Millions of Ethiopians cast their votes Sunday in the first national election since the 2012 death of longtime leader Meles Zenawi. Mr. Meles' party, the Ethiopian People's Revolutionary Democratic Front, is almost certain of victory again. VOA's Anita Powell reports from Addis Ababa.
Video

Video Scientists Testing Space Propulsion by Light

Can the sun - the heart of our solar system - power a spacecraft to the edge of our solar system? The answer may come from a just-launched small satellite designed to test the efficiency of solar sail propulsion. Once deployed, its large sail will catch the so-called solar wind and slowly reach what scientists hope to be substantial speed. VOA’s George Putic reports.
Video

Video FIFA Trains Somali Referees

As stability returns to the once lawless nation of Somalia, the world football governing body, FIFA, is helping to rebuild the country’s sport sector by training referees as well as its young footballers. Abdulaziz Billow has more from Mogadishu.
Video

Video With US Child Obesity Rates on the Rise, Program Promotes Health Eating

In its fifth year, FoodCorps puts more than 180 young Americans into 500 schools across the United States, where they focus on teaching students about nutrition, engaging them with hands-on activities, and improving their access to healthy foods whether in the cafeteria or the greater community. Aru Pande has more.
Video

Video Virginia Neighborhood Draws People to Nostalgic Main Street

In the U.S., people used to grow up in small towns with a main street lined by family-owned shops and restaurants. Today, however, many main streets are worn down and empty because shoppers have been lured away by shopping malls. But in the Del Ray neighborhood of Alexandria, Virginia, main street is thriving. VOA’s Deborah Block reports it has a nostalgic feel with its small restaurants and unique stores.
Video

Video Effort Underway to Limit Damage from California Oil Spill

Cleanup crews are working around the clock to remove oil from the waters off the coastal city of Santa Barbara, in California. About 380,000 liters of oil may have leaked out before a rupture in an onshore, underground pipeline was discovered Tuesday. The environmental disaster hit the popular West Coast resort area before the Memorial Day weekend. VOA's Zlatica Hoke reports investigators have yet to determine what caused the incident.

VOA Blogs