Best of the Week
Most Popular
1. US Housing Market Real Estate Crash The Next Shoe To Drop – Part II - Chris_Vermeulen
2.The Coronavirus Greatest Economic Depression in History? - Nadeem_Walayat
3.US Real Estate Housing Market Crash Is The Next Shoe To Drop - Chris_Vermeulen
4.Coronavirus Stock Market Trend Implications and AI Mega-trend Stocks Buying Levels - Nadeem_Walayat
5. Are Coronavirus Death Statistics Exaggerated? Worse than Seasonal Flu or Not?- Nadeem_Walayat
6.Coronavirus Stock Market Trend Implications, Global Recession and AI Stocks Buying Levels - Nadeem_Walayat
7.US Fourth Turning Accelerating Towards Debt Climax - James_Quinn
8.Dow Stock Market Trend Analysis and Forecast - Nadeem_Walayat
9.Britain's FAKE Coronavirus Death Statistics Exposed - Nadeem_Walayat
10.Commodity Markets Crash Catastrophe Charts - Rambus_Chartology
Last 7 days
Stock Market Dow 30k before End of 2020? - 13th Jul 20
Credit Market Investments Turned Into End-User Risk Again - 13th Jul 20
Investors Are Going All-In on This Coronavirus Proof Industry - 13th Jul 20
5 Vital Insights That You Can Gain From Instagram Trackers - 13th Jul 20
Stop Believing The 'Economy' Is The Same As The Stock Market - 12th Jul 20
Spotify Recealed as The “Next Netflix” - 12th Jul 20
Getting Ahead of the Game: What Determines the Prices of Oil? - 12th Jul 20
The Big Short 2020 – World Pushes Credit/Investments Into Risk Again - 11th Jul 20
The Bearish Combination of Soaring Silver and Lagging GDX Miners - 11th Jul 20
Stock Market: "Relevant Waves Vs. Irrelevant News" - 10th Jul 20
Prepare for the global impact of US COVID-19 resurgence - 10th Jul 20
Golds quick price move increases the odds of a correction - 10th Jul 20
Declaring Your Independence from Currency Debasement - 10th Jul 20
Tech Stocks Trending Towards the Quantum AI EXPLOSION! - 9th Jul 20
Gold and Silver Seasonal Trend Analysis - 9th Jul 20
Facebook and IBM Tech Stocks for Machine Learning Mega-Trend Investing 2020 - 9th Jul 20
LandRover Discovery Sport Service Blues, How Long Before Oil Change is Actually Due? - 9th Jul 20
Following the Gold Stock Leaders as the Fed Prints - 9th Jul 20
Gold RESET Breakout on 10 Reasons - 9th Jul 20
Fintech facilitating huge growth in online gambling - 9th Jul 20
Online Creative Software Development Service Conceptual Approach - 9th Jul 20
Coronavirus Pandemic UK and US Second Waves, and the Influenza Doomsday Scenario - 8th Jul 20
States “On the Cusp of Losing Control” and the Impact on the Economy - 8th Jul 20
Gold During Covid-19 Pandemic and Beyond - 8th Jul 20
UK Holidays 2020 - Driving on Cornwall's Narrow Roads to Bude Caravan Holiday Resort - 8th Jul 20
Five Reasons Covid Will Change SEO - 8th Jul 20
What Makes Internet Packages Different? - 8th Jul 20
Saudi Arabia Eyes Total Dominance In Oil And Gas Markets - 7th Jul 20
These Are the Times That Call for Gold - 7th Jul 20
A Reason to be "Extra-Attentive" to Stock Market Sentiment Measures - 7th Jul 20
The Beatings Will Continue Until the Economy Improves - 6th Jul 20
The Corona Economic Depression Is Here - 6th Jul 20
Stock Market Short-term Peaking - 6th Jul 20
Gold’s Major Reversal to Create the “Handle” - 5th July 20
Gold Market Manipulation And The Federal Reserve - 5th July 20
Overclockers UK Custom Build PC Review - 1. Ordering / Stock Issues - 5th July 20
How to Bond With Your Budgie / Parakeet With Morning Song and Dance - 5th July 20
Silver Price Trend Forecast Summer 2020 - 3rd Jul 20
Silver Market Is at a Critical Juncture - 3rd Jul 20
Gold Stocks Breakout Not Confirmed Yet - 3rd Jul 20
Coronavirus Strikes Back. But Force Is Strong With Gold - 3rd Jul 20
Stock Market Russell 2000 Gaps Present Real Targets - 3rd Jul 20
Johnson & Johnson (JNJ) Big Pharma Stock for Machine Learning Life Extension Investing - 2nd Jul 20
All Eyes on Markets to Get a Refreshed Outlook - 2nd Jul 20
The Darkening Clouds on the Stock Market S&P 500 Horizon - 2nd Jul 20
US Fourth Turning Reaches Boiling Point as America Bends its Knee - 2nd Jul 20
After 2nd Quarter Economic Carnage, the Quest for Philippine Recovery - 2nd Jul 20
Gold Completes Another Washout Rotation – Here We Go - 2nd Jul 20
Roosevelt 2.0 and ‘here, hold my beer' - 2nd Jul 20
U.S. Dollar: When Almost Everyone Is Bearish... - 1st Jul 20
Politicians Prepare New Money Drops as US Dollar Weakens - 1st Jul 20
Gold Stocks Still Undervalued - 1st Jul 20
High Premiums in Physical Gold Market: Scam or Supply Crisis? - 1st Jul 20
US Stock Markets Enter Parabolic Price Move - 1st Jul 20
In The Year 2025 If Fiat Currency Can Survive - 30th Jun 20
Gold Likes the IMF Predicting a Deeper Recession - 30th Jun 20
Silver Is Still Cheap For Now - 30th Jun 20
More Stock Market Selling Ahead - 30th Jun 20
Trending Ecommerce Sites in 2020 - 30th Jun 20
Stock Market S&P 500 Approaching the Precipice - 29th Jun 20
APPLE Tech Stock for Investing to Profit from the Machine Learning Mega trend - 29th Jun 20
Student / Gamer Custom System Build June 2020 Proving Impossible - Overclockers UK - 29th Jun 20
US Dollar with Ney and Gann Angles - 29th Jun 20
Europe's Banking Sector: When (and Why) the Rout Really Began - 29th Jun 20
Will People Accept Rampant Inflation? Hell, No! - 29th Jun 20
Gold & Silver Begin The Move To New All-Time Highs - 29th Jun 20
US Stock Market Enters Parabolic Price Move – Be Prepared - 29th Jun 20
Meet BlackRock, the New Great Vampire Squid - 28th Jun 20
Stock Market S&P 500 Approaching a Defining Moment - 28th Jun 20

Market Oracle FREE Newsletter

AI Stocks 2020-2035 15 Year Trend Forecast

Greece Debt Crisis To Trigger Financial Tsunami across Europe

Politics / Global Debt Crisis Mar 26, 2010 - 07:12 PM GMT

By: Pravda

Politics

Best Financial Markets Analysis ArticleThe summit of the European Union continued on March 26 in Brussels. The most important issue on the agenda of the summit is the crisis in Greece. The biggest intrigue of the meeting is about the stance of the EU’s largest country – Germany – which is supposed to carry most of the burden of help to the country that faces the danger of default. German Chancellor Angela Merkel stated earlier that Greece was not supposed to receive any international help. She reportedly did not even want to discuss this issue in Brussels.


However, Merkel delivered a speech on March 25, in which she had to touch upon the most serious question for the European Union for the time being. She still insisted that financial assistance could be provided to Greece only in case of extreme emergency. She said that the Greek government had not declared its insolvency, therefore there was no reason to rescue the country.

However, Merkel had to change her mind a little. She said that Greece could receive help from the International Monetary Fund, in which Germany plays an important role. If other countries wish to support Greece, Germany would not mind, Merkel also said. However, she strongly rejected the variant, in which the funds would be assigned from both the budget of the European Union and from the IMF. She said that it could be possible in case of emergency, which, as she said, had not come yet.

She also said that it would be absurd to think of Germany as a scapegoat for the problems that Europe was facing.

However, Merkel found no understanding among her European counterparts. Deputy head of the European Commission Viviane Reding said that the crisis in Greece could trigger a financial tsunami in the whole of Europe.

“If Greece enters the state of default, the consequences will be visible everywhere – in Britain, Spain, France, Portugal and Italy,” she said.

Reding urged Merkel to place European interests above the national interests of Germany and agree to help Greece before it is too late.

The Prime Minister of Luxembourg Jean-Claude Juncker did not share Merkel’s point of view either.

“We came to Brussels to make a decision. Probably, we will agree upon the provision of bilateral assistance from the IMF and the EU,” he said before the summit. Mr. Juncker acknowledged that it would be very difficult to overpersuade Germany.

Spanish Prime Minister Jose Luis Zapatero said that Europe’s assistance to Greece would be a loan, which the nation would have to return with interest. Zapatero added that all countries of the euro zone must take responsibility to help Greece, the IMF was not necessary at all, he said.

Greek Prime Minister George Papandreou said prior to the summit that the situation in Greece – a 300-billion-euro debt and a 13-percent budget deficit – was a challenge to the entire euro zone.

As a result, All 16 euro zone countries have backed a financing plan to help debt-laden Greece, which will include IMF money. The safety net would total up to 22bn euros (£20bn), but would only be used if market lending to Greece dried up.

European Commission President Jose Manuel Barroso said he was "extremely happy that we've reached this deal", calling it "a right decision". The joint eurozone and International Monetary Fund bail-out program envisages strict conditions and requires the unanimous agreement of the 16 euro zone nations to release loans.

The agreement included no numbers, but officials in Brussels speaking on condition of anonymity said the total package would be some 22bn euros.

The euro rose from a 10-month low against the dollar after European leaders meeting in Brussels endorsed a Franco-German proposal to assist Greece through a mix of International Monetary Fund and bilateral loans, Bloomberg said.

Europe’s currency advanced for the first time in four days versus the dollar after European leaders put the IMF on standby to help debt-stricken Greece.

The euro will likely fall to $1.20 to $1.25 against the dollar over the next 6 to 12 months.

Vadim Trukhachev

Pravda.ru

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Pravda Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules