250 lines
6.7 KiB
Plaintext
Executable File
250 lines
6.7 KiB
Plaintext
Executable File
finance
|
|
financialcrisis
|
|
8187396
|
|
-----
|
|
# Eurozone members left to fend off markets alone
|
|
|
|
## European nations in crisis over their massive debts have been left to sort
|
|
out their woes alone after Germany opposed any increase to the eurozone bail-
|
|
out fund.
|
|
|
|
![Eurozone members left to fend off markets alone ][1]
|
|
|
|
IMF chief Dominique Strauss-Kahn and ECB president Jean-Claude Trichet talk
|
|
prior to the Eurogroupe council meeting Photo: AFP/Getty Images
|
|
|
|
[![Philiip Aldrick][2]][3]
|
|
|
|
By [Philip Aldrick][4], Economics Editor 7:39PM GMT 07 Dec 2010
|
|
|
|
[Comments][5]
|
|
|
|
Ministers said individual countries were taking the necessary actions, with
|
|
Ireland outlining a €6bn (£5bn) austerity package for 2011 and Portugal
|
|
expected to follow suit despite the recent general strike over planned
|
|
reforms.
|
|
|
|
Instead, European Union finance ministers confirmed that a second, more
|
|
stringent round of stress tests on the banks would be carried out in February
|
|
and that the details of a permanent crisis resolution mechanism for troubled
|
|
euro members would be outlined next week.
|
|
|
|
Weaker nations had been pushing for the €440bn euro area rescue package to be
|
|
increased to calm tremulous bond markets. Facing resistance from Germany, the
|
|
strongest nation in the single currency bloc, the plans were dropped. European
|
|
Council President Herman Van Rompuy said: "Up to now there is no need to
|
|
increase the means available for the facility. If needed, we will consider,
|
|
but there is no question today."
|
|
|
|
In the meantime, the European Central Bank continues to prop up Greece,
|
|
Ireland and Portugal by buying their sovereign debt from banks to provide
|
|
liquidity. Last week, it bought nearly €2bn - its most concerted action in
|
|
five months.
|
|
|
|
Traders said the bank is resisting buying Spanish sovereign debt to draw a
|
|
line between the troubled peripheral nations and their much larger
|
|
Mediterranean neighbour, which many fear may be infected by the default fears
|
|
sweeping across Europe. Legal & General Investment Management heaped fresh
|
|
pressure on the country on Tuesday, though, by warning it would not buy
|
|
Spanish debt unless the ECB took the lead. Spain has a huge refinancing
|
|
exercise next year.
|
|
|
|
## Related Articles
|
|
|
|
* [Ireland's budget vote goes to wire][6]
|
|
|
|
07 Dec 2010
|
|
|
|
* [EU debt costs rise as ministers take no steps][7]
|
|
|
|
07 Dec 2010
|
|
|
|
* [EC accused of covering up Greek hedge fund report][8]
|
|
|
|
07 Dec 2010
|
|
|
|
* [Euro collapse 'possible' amid deepening divisions over bail-out][9]
|
|
|
|
06 Dec 2010
|
|
|
|
* [Euro falls, bond markets uneasy over debt crisis as ministers gather][10]
|
|
|
|
06 Dec 2010
|
|
|
|
* [Ireland's austerity budget: what economists are saying][11]
|
|
|
|
08 Dec 2010
|
|
|
|
European ministers are hoping the ECB's actions, clarity on the resolution
|
|
mechanism, new transparency on the banks, and individual country austerity
|
|
programmes will be enough to restore confidence in the euro area. However, the
|
|
International Monetary Fund's chief [Dominique Strauss-Kahn][12] warned that
|
|
"piecemeal" fixes would not work and a "comprehensive" solution is needed.
|
|
|
|
Attention is now switching to Portugal, which is considered the next weak link
|
|
in the chain, after Greece's €110bn bail-out and Ireland's €85bn rescue.
|
|
Speaking after a two-day meeting of EU finance ministers, Olli Rehn, European
|
|
Economic Affairs Commissioner said: "Currently the Portuguese government is
|
|
preparing its next steps and in our view, it is important that the Portuguese
|
|
government will shortly substantiate the consolidation measures for next
|
|
year."
|
|
|
|
It has outlined plans to reduce its budget deficit to 4.6pc of GDP in 2011
|
|
from 7.3pc this year, through €5bn of tax rises and spending cuts.
|
|
|
|
The euro has recovered a little and 10-year sovereign bond yields for the
|
|
area's peripheral states have come down from their record levels, but remain
|
|
punitively high. Yields edged higher on Tuesday, but the spread against the
|
|
German bund narrowed - suggesting the markets are beginning to believe the
|
|
euro nations will stick together.
|
|
|
|
[X][13] Share & bookmark
|
|
|
|
Delicious Facebook Google Messenger Reddit Twitter
|
|
|
|
Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
|
|
|
|
[What are these?][14]
|
|
|
|
* Share: [Share][13] [ ][15] [ ][16]
|
|
|
|
[Tweet][17]
|
|
|
|
http://www.telegraph.co.uk/finance/financialcrisis/8187396/Eurozone-members-
|
|
left-to-fend-off-markets-alone.html
|
|
|
|
Telegraph
|
|
|
|
## [Financial Crisis][18]
|
|
|
|
* ### [Europe »][19]
|
|
|
|
* ### [Finance »][20]
|
|
|
|
* ### [Markets »][21]
|
|
|
|
* ### [Business Latest News »][22]
|
|
|
|
* ### [EU »][23]
|
|
|
|
In finance
|
|
|
|
[![Truncheon-wielding police in Barcelona have clashed with protesters at a
|
|
makeshift camp that is one of dozens erected in Spain to protest at high
|
|
unemployment][24] ][25]
|
|
|
|
### [Spanish anti-crisis protests][25]
|
|
|
|
[![Thousands of protesters occupy Puerta del Sol square in Madrid][26] ][27]
|
|
|
|
### [Huge protests in Madrid][27]
|
|
|
|
[![Riot police use tear gas as protesters throw petrol bombs in Athens][28]
|
|
][29]
|
|
|
|
### [Tear gas and petrol bombs][29]
|
|
|
|
[![Irish bank stress tests: the key points][30] ][31]
|
|
|
|
### [Irish bank stress tests: key points][31]
|
|
|
|
[![Q&A: What is the Independent Commission on Banking?][32] ][33]
|
|
|
|
### [Q&A: What is the Independent Commission on Banking?][33]
|
|
|
|
[X][13] Share & bookmark
|
|
|
|
Delicious Facebook Google Messenger Reddit Twitter
|
|
|
|
Digg Fark LinkedIn Google Buzz StumbleUpon Y! Buzz
|
|
|
|
[What are these?][14]
|
|
|
|
Share:
|
|
|
|
* [ ][13]
|
|
|
|
* [ ][15]
|
|
|
|
* [ ][16]
|
|
|
|
* [Tweet][17]
|
|
|
|
* Advertisement
|
|
|
|
![][34]
|
|
|
|
telegraphuk
|
|
|
|
Please enable JavaScript to view the [comments powered by Disqus.][35] [blog
|
|
comments powered by Disqus][36]
|
|
|
|
[![][37]][38]
|
|
|
|
Advertisement
|
|
|
|
[Market Data »][39]
|
|
|
|
sponsored features
|
|
|
|
Loading
|
|
|
|
Finance Most Viewed
|
|
|
|
* TODAY
|
|
|
|
* PAST WEEK
|
|
|
|
* PAST MONTH
|
|
|
|
1. [Britain faces bleak two years after feeble economic growth][40]
|
|
|
|
2. [Look, even Sweden charges for healthcare][41]
|
|
|
|
3. [BMW blames speculators as aluminium costs rise][42]
|
|
|
|
4. [US consumers in spending retreat][43]
|
|
|
|
5. [Google sued by PayPal in Silicon Valley's mobile war][44]
|
|
|
|
1. [What happens when Greece defaults][45]
|
|
|
|
2. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
|
|
dress][46]
|
|
|
|
3. [It's ever more obvious, Greece must leave the euro][47]
|
|
|
|
4. [Dominique Strauss-Kahn: new claims of sexual misconduct add to pressure
|
|
on former IMF chief][48]
|
|
|
|
5. [How the euro crisis end game might look][49]
|
|
|
|
1. [What happens when Greece defaults][45]
|
|
|
|
2. [Dominique Strauss-Kahn: IMF head 'hired prostitutes from Manhattan
|
|
madam'][50]
|
|
|
|
3. [Dominique Strauss-Kahn: DNA samples confirm sperm traces on maid's
|
|
dress][46]
|
|
|
|
4. [A tax-based alternative to the Alternative Vote][51]
|
|
|
|
5. [Dominique Strauss-Kahn: maid experienced 'extraordinary trauma'][52]
|
|
|
|
Advertisement
|
|
|
|
Classified Advertising
|
|
|
|
* [Services][53]
|
|
|
|
* [Fine Arts][54]
|
|
|
|
* [Sales Jobs][55]
|
|
|
|
Loading
|
|
|
|
[Find your ideal job with Telegraph Jobs][56]
|
|
|
|
var puffs_8120648 = new Array();
|
|
|