News / Europe

Most EU Countries Accept New Fiscal Deal

Britain's Prime Minister David Cameron (C) looks at Germany's Chancellor Angela Merkel (L) at a European Union summit in Brussels, December 9, 2011.
Britain's Prime Minister David Cameron (C) looks at Germany's Chancellor Angela Merkel (L) at a European Union summit in Brussels, December 9, 2011.

Most members of the European Union agreed to a new deal Friday that is intended to address debt problems that have threatened the common euro currency and driven Europe into an economic crisis. The agreement increases EU supervision of government budgets of member nations.

France and Germany pushed hard for the deal.

After tough negotiations in Brussels, all 17 European Union members that use the euro, and some other EU nations, agreed to the plan.

That pleased German Chancellor Angela Merkel.

"I am very pleased with the results of yesterday's talks - this is not a foreign compromise for the sake of the Euro. Across the world, people will see that we've learned from mistakes made in the past," said Merkel.

EU leaders hope financial markets will be reassured by the plan's long-term solution to the eurozone government debt crisis. Greece, Portugal and Ireland have already received international bailouts because of their debt, and some analysts feared even greater needs from Spain and Italy.

EU leaders also agreed to give the International Monetary Fund another $260 billion for programs to keep the current crisis from spreading.

But Britain rejected the deal. It is the strongest of the EU nations that do not use the euro and a major financial center. A proposed tax on financial transactions was one of several issues that raised concerns for British Prime Minister David Cameron.  

"What is on offer isn't in Britain's interests and I didn't agree to it," said Cameron.

Stock markets and the value of the euro rose Friday after the deal was announced.

Economists were split about whether the deal would do enough to prevent future fiscal crises and solve the current problems.

In Frankfurt, Germany, Chris Zwermann, of Zwermann Financial, said it may be just as well that Britain did not agree to the deal.  

"We get the possibility to make decisions for the Euro countries, which means 17 countries without any influence from other countries who don't belong into this area," said Zwermann.

Deutsche Bank's Stefan Schneider welcomes the agreement to enforce deficit limits.

"Because otherwise, you know, something, 'just let's pull the check book and write a check' - I think that ultimately would cause a serious problem in terms of democracy," said Schneider.

The deal needs final ratification by member countries, and could be signed by March.

You May Like

Photogallery Obama Announces Plan to Send 3,000 Troops to Liberia in Ebola Fight

At US Centers for Disease Control and Prevention, Obama details troop deployment and other pieces of US plan More

China Muslims Work to Change Perceptions After Knife Attacks

Muslims in Kunming say that they condemn the violence, it is not a reflection of the true beliefs of their faith More

Humanitarian Aid, Equipment Blocked in Cameroon

Move is seen as a developing supply crisis in West Africa 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.
Enviropreneur Seeks to Save the Environment, Empower the Communityi
X
September 16, 2014 2:06 PM
Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video Enviropreneur Seeks to Save the Environment, Empower the Community

Lorna Rutto, a former banker, is now an ‘enviropreneur’ - turning plastic waste into furniture and fences discusses the challenges she faces in Africa with raw materials and the environment.
Video

Video West Trades Accusations Over Ransoms

As world leaders try to forge a common response to the threat posed by Islamic State militants in Iraq and Syria, there is simmering tension over differing policies on paying ransoms. In the past month, the jihadist group has beheaded two Americans and one Briton. Both countries refuse to pay ransom money. As Henry Ridgwell reports for VOA from London, there is uncertainty in the approach of some other European nations.
Video

Video Scotland Independence Bid Stokes Global Interest

The people of Scotland are preparing to vote on whether to become independent and break away from the rest of Britain, in a referendum being watched carefully in many other countries. Some see it as a risky experiment; while others hope a successful vote for independence might energize their own separatist demands. Foreign immigrants to Scotland have a front row seat for the vote. VOA’s Henry Ridgwell spoke to some of them in Edinburgh.
Video

Video Washington DC Mural Artists Help Beautify City

Like many cities, Washington has a graffiti problem. Buildings and homes, especially in low-income neighborhoods, are often targets of illegal artwork. But as we hear from VOA’s Julie Taboh, officials in the nation's capital have come up with an innovative program that uses the talents of local artists to beautify the city.
Video

Video US Muslim Leaders Condemn Islamic State

Leaders of America's Muslim community are condemning the violent extremism of the Islamic State group in Iraq and Syria. The U.S. Muslim leaders say militants are exploiting their faith in a failed effort to justify violent extremism. VOA correspondent Meredith Buel reports.
Video

Video Americans' Reaction Mixed on Obama Strategy for Islamic State Militants

President Barack Obama’s televised speech on how the United States plans to “degrade and destroy” the group known as the Islamic State reached a prime-time audience of millions. And it came as Americans appear more willing to embrace a bolder, tougher approach to foreign policy. VOA producer Katherine Gypson and reporter Jeff Seldin have this report from Washington.
Video

Video Authorities Allege LA Fashion Industry-Cartel Ties

U.S. officials say they have broken up crime rings that funneled tens of millions of dollars from Mexican drug cartels through fashion businesses in Los Angeles. Mike O'Sullivan reports that authorities announced nine arrests, as 1,000 law enforcement agents fanned out through the city on Wednesday.
Video

Video Bedouin Woman Runs Successful Business in Palestinian City

A Bedouin woman is breaking social taboos by running a successful vacation resort in the Palestinian town of Jericho. Bedouins are a sub-group of Arabs known for their semi-nomadic lifestyle. Zlatica Hoke says the resort in the West Bank's Jordan Valley is a model of success for women in the region.


Carnage and mayhem are part of daily life in northern Nigeria, the result of a terror campaign by the Islamist group Boko Haram. Fears are growing that Nigeria’s government may not know how to counter it, and may be making things worse. More

AppleAndroid