EU calls emergency summit as Greece crisis deepens

Greece’s debt hit near-pariah status Wednesday as fears of a default jolted markets and global finance leaders sought to press key governments to join a rescue operation. The European Union called a crisis summit as the mounting debt emergency threatened to suck in Portugal and other high-deficit nations. Discontent grew in Greece with new strikes erupting and protesters blocking tourists on one cruise ship. Greece acted to stop speculators... [more]

EU president: Greece will get aid in time

The European Union’s president said Wednesday he is fully confident that debt-laden Greece will receive the financial assistance it needs in time to address its debt problems and to preserve eurozone stability. Negotiations on a euro 45 billion rescue package are “on track” among the EU, European Central Bank, IMF and the Greek government, and an agreement should be reached by early May, Herman Van Rompuysaid. He also... [more]

European debt crisis looms over meeting

The financial crisis engulfing Greece and Portugal — and fears it could spread to other eurozone countries — overshadowed an expected meeting Wednesday between German Chancellor Angela Merkel and the heads of the International Monetary Fund and theEuropean Central Bank. Worried markets are looking to Merkel, IMF managing director Dominique Strauss-Kahn and ECB President Jean-Claude Trichet and others to send a positive signal,... [more]

Junk Debt Rating Piles Pressure On Greece

Greece’s borrowing costs are spiralling and a debt payment deadline is looming a day after a credit ratings agency downgraded the nation’s debt to junk status. The euro dropped to a new one-year low against the dollar and stock markets in London, Lisbon, Paris, Frankfurt and Madrid all fell this morning amid fears of a widening European crisis. Greece urgently needs money within the next three weeks, as it has 8.5bn euros worth... [more]

Greece downgraded as Europe’s debt crisis worsens

Europe’s government debt crisis worsened ominously Tuesday when Greece’s credit rating was downgraded to junk status and Portugal’s debt was lowered on fears the trouble could spread. Stocks slid on the news. The Portuguese downgrade was a sign the European Union’s fears of that the debt crisis would spread beyond Greece — and further undermine the euro currency — might be coming true. For its part, Greece... [more]

Merkel: Greece expulsion from euro not an option

German Chancellor Angela Merkel sought Monday to calm fears thatBerlin would block aid to debt-wracked Greece but stressed that Athens must produce a credible plan to reduce its deficits. Speaking to reporters in a hastily arranged statement, Merkel said: “I say quite clearly. Germany will help, if the corresponding pre-conditions are met. That will take a few days.” She said negotiators from the International Monetary... [more]

Germany could refuse aid to Greece

Finance Minister Wolfgang Schäuble said in an interview published on Sunday that Germany could refuse Greece’s plea for emergency loans to rescue it from a mountain of debt. “The fact that neither the European Union nor the German government has taken a decision means: it could be positive or negative,” he told the Bild am Sonntagnewspaper. “It depends alone on whether Greece in the coming years continues along the saving... [more]

IMF chief warns ‘speed’ needed in Greek bailout

The head of the IMF warned on Sunday that speed was of the essence if a Greek bailout is to soothe money markets, after Germany stressed it has the right to reject Athens’ call. “The IMF, the European partners and everyone involved in the financing effort recognizes the need for speed,” said International Monetary Fund managing director Dominique Strauss-Kahn in Washington after talks with Greek Finance Minister George... [more]

Germany, France signal hard line with Greece

European heavyweights Germany and France vowed on Sunday to take a hard line with Greece in exchange for financial support as doubts emerged over whether a 45 billion euro (39.2 billion pound) aid package was sufficient to prevent a default. Greece bowed to intense pressure from financial markets on Friday, requesting funds from the European Union and International Monetary Fund (IMF) in what would be the first bailout of a member of the... [more]

German Conservatives suggest Greece leave Euro currency union

Bavaria’s conservative party, the Christian Social Union (CSU), has suggested the Greek government consider leaving the Euro currency union in the light of the country’s enormous financial difficulties. “Greece has not only a liquidity problem but also a fundamental growth and structural problem,” Hans-Peter Friedrich, MP for the CSU told Der Spiegelmagazine on Saturday. He said this should prompt Greek politicians to “seriously... [more]

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