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

At Khmer Rouge Court, Long-Awaited Verdict Approaches

First phase of trial, which is coming to an end, has focused on forced exodus of Phnom Penh in 1975 - and now many are hopeful justice will be served More

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities More

Video Information War Rages Alongside Real One in Ukraine

Downing of Malaysian airliner, allegations of cross-border shelling move information war in war-torn country to a new level 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.
Information War Rages Alongside Real One in Ukrainei
X
Al Pessin
July 31, 2014 8:13 PM
The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Gazans in Shelled School Sought Shelter

Israel's air and ground assault against Hamas-led fighters in Gaza has forced many Palestinians to flee their homes, seeking safety. But safe places are hard to find, as VOA’s Scott Bobb reports from Jabaliya.
Video

Video Rapid Spread of Ebola in West Africa Prompts Global Alert

Across West Africa, health officials are struggling to keep up with what the World Health Organization describes as the worst ebola outbreak on record. The virus has killed hundreds of people this year. U.S. President Barack Obama and other world leaders are watching the developments closely as they weigh what actions, if any, are needed to help contain the disease.
Video

Video Michelle Obama: Young Africans Need to Embrace Women's Rights

U.S. first lady Michelle Obama urged some of Africa's best and brightest to advocate for women's rights in their home countries. As VOA's Pam Dockins explains, Obama spoke to some 500 participants of the Young African Leaders Initiative, a six-week U.S.-based training and development program.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.
Video

Video Study: Latino Students Most Segregated in California

Even though legal school segregation ended in the United States 60 years ago, one study finds segregation still occurs in the U.S. based on income and race. The University of California Los Angeles Civil Rights Project finds that students in California are more segregated by race than ever before, especially Latinos. Elizabeth Lee reports for VOA from Los Angeles.

AppleAndroid