Wednesday, June 6, 2012

G-7 Ministers Press Europe For Action on Debt Crisis

Wall Street Journal
June 5, 2012

Financial chiefs from the Group of Seven leading nations pressed Europe on Tuesday in a teleconference to act more aggressively to tame its escalating debt crisis, expecting euro-zone leaders to bolster their banking system in the coming weeks.

Officials in the U.S. and some other G-7 countries are worried that European leaders aren't acting quickly or boldly enough to fix a crisis that threatens to send the region into a severe recession, dragging down other economies around the world.

In addition to the U.S., the G-7 includes Canada, France, Germany, Italy, Japan and the U.K.

A primary focus of the call was Spain, where the government is struggling to recapitalize banks saddled with billions of euros in bad real-estate loans. Although Spain isn't a member of the G-7, Spanish officials participated on the call.

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