Fri, 06/29/2012 - 03:00 EDT - NPR - National Public Radio (Business News)
European leaders worked through the night at a summit in Brussels aimed at tackling the eurozone's worsening debt crisis. There's been growing concern Italy will soon become the sixth eurozone nation to request a bailout.» E-Mail This» Add to Del.icio.us
European leaders meet Sunday for a crunch summit aimed at tackling the eurozone's spiralling debt crisis after warning lenders a day earlier to accept 50% losses on Greek debt and agreeing to a bank recapitalisation plan worth more than $100 billion.
Germany and France broke their deadlock over a new bailout for Greece ahead of an emergency eurozone summit on Thursday aimed at saving the euro from the worst crisis in its 12-year history.German Chancellor Angela Merkel and French President Nicolas Sarkozy, the eurozone's key players, agreed on a "common position" after late-night talks in Berlin just hours before the summit in Brussels, the French president's office said.European Central Bank president Jean-Claude Trichet took part in the meeting.
ATHENS/BRUSSELS — Greece formally requested a six-month extension to its euro zone loan agreement on Thursday, offering major concessions as it raced to avoid running out of cash within weeks and overcome resistance from skeptical partners led by Germany.
With its EU/IMF bailout program due to expire in little more than a week, the government of leftist Prime Minister Alexis Tsipras urgently needs to secure a financial lifeline to keep the country afloat beyond late March.
BRUSSELS — Confidence in the eurozone’s economy fell further in April, data showed, strengthening the case for a cut in interest rates this week by the European Central Bank.
The eurozone is facing a difficult road out of recession and has seen a souring of the mood among companies and consumers since March, after an optimistic start to the year was disrupted by turmoil in Cyprus and Italy.
The euro area’s recovery came close to a halt in the third quarter as German growth slowed, France’s economy unexpectedly shrank and Italy extended its record-long recession.
Gross domestic product in the 17-nation euro area rose 0.1% in the three months through September, cooling from a 0.3% expansion in the second quarter, the European Union’s statistics office in Luxembourg said today. That’s in line with the median forecast in a Bloomberg News survey of 41 economists. Growth in Germany, the region’s largest economy, eased to 0.3% from 0.7%.
It's not so much that the European debt relief turned out to be inadequate — it was the politics that proved unrealistic. When leaders don't seem to know what to do, panic sets in. The same inability in Washington to tackle big, systemic problems may cause long-term harm to the American economy.» E-Mail This » Add to Del.icio.us