David Cameron plunged Britain’s position in Europe into the greatest uncertainty in a generation as he used his veto to block a new EU-wide treaty and left at least 23 other countries to forge a pact to salvage the single currency. With the apparent blessing of the pro-European deputy prime minister, Nick Clegg – [...]
One of the main architects of the single European currency, Jacques Delors, has said the eurozone was flawed from the beginning. He told Britain’s Daily Telegraph that the lack of central powers to co-ordinate economic policies allowed some members to run up unsustainable debt. As head of the European Commission from 1985 to 1995, he [...]
In the financial markets, traders have responded to Merkel’s speech by pushing up the value of Italy’s and Spain’s debt — in a sign that they are more confident about the crisis. The yield (interest rates) on Italian 10-year bonds fell to 6.5%, from 6.8% this morning. Spanish yields are down at 5.5%, from 5.8%. [...]
EU finance ministers are meeting in Brussels after a top official said the region had just days to take decisive action to resolve the crisis. EU Monetary Affairs Commissioner Olli Rehn said: “We are now entering the critical period of 10 days to complete and conclude the crisis response”. The meeting comes a day [...]
The former EU commissioner Mario Monti has been asked to form Italy’s next government after a day of hectic consultations and a televised initiative by Silvio Berlusconi who announced he would continue to be a force in politics. Monti accepted the mandate, declaring Italy had to become “a point of strength, and not of weakness, [...]
The chancellor, George Osborne, has said an effective resolution to the eurozone debt crisis would be the “single biggest boost” the UK economy could receive. Osborne, who is under increasing pressure to stimulate economic growth in the face of the Treasury’s repeatedly downgraded forecasts, said the government was prepared to help families and businesses struggling [...]
German negotiators are at loggerheads with their French counterparts over pledges to quadruple the eurozone’s €440bn (£382bn) bailout fund ahead of a crucial vote in the Bundestag on Thursday that could decide the fate of the currency zone. Attempts by Berlin to write off up to 50% of Greek debts as part of a wider [...]
The outline of a large and ambitious eurozone rescue plan is taking shape, reports from the International Monetary Fund (IMF) in Washington suggest. It is expected to involve a 50% write-down of Greece’s massive government debt, the BBC’s business editor Robert Peston says. The plan also envisages an increase in the size of the [...]