July 19, 2011
Angela Merkel has quashed hopes of a lasting solution for Greece at Thursday's crucial summit of European leaders, even as the International Monetary Fund warned of the repercussions for global economic growth if the eurozone's debt crisis was not tackled quickly.
Amid suggestions that banks could be slapped with a levy of €10bn (£8.8bn) over three years to raise €30bn for another Greece bailout, the German chancellor insisted that there would not be a "spectacular event", such as a restructuring of Greece's debt. "Further steps will be necessary and not just one spectacular event which solves everything," Merkel said.
Economists warned that indecision after tomorrow's summit could cause severe tension in the markets.
Gabriel Stein, at Lombard Street Research, said: "Ministers must come up with some solution that does not involve postponing once again the difficult positions that alone can solve the fiscal crisis. Otherwise the next eruption of the crisis won't be in the autumn, it is more likely to be next week. Moreover, each failure to act raises the threshold for what must be done next time."
More
No comments:
Post a Comment