Correspondent's Choice

This story about inconclusive Euro talks was published on 8th December 2010.

The head of the IMF criticised the EU’s piecemeal approach to rescuing the euro currency from contagion as ministerial talks in Brussels yesterday (7 December) gave no succour to countries with worsening sovereign debt problems.

IMF Managing Director Dominique Strauss-Kahn failed to persuade finance ministers from the 16-nation single currency area on Monday to increase the size of their 750bn financial safety net or the European Central Bank to step up government bond purchases.

“The euro zone has to provide a comprehensive solution to this problem. The piecemeal approach is not a good one,” Strauss-Kahn said.

Yesterday’s ministerial talks on buffeting the euro zone against a worsening sovereign debt crisis will spill into tomorrow and next week, as countries prepare a summit to rescue the euro.

Today diplomats from the 27-member states are meeting to take stock of yesterday’s talks to rescue the euro and pave the way for discussions next week on a permanent EU loan facility to be up and running by 2013.

In the wake of more possible EU bailouts in Portugal and Spain, EU leaders will be meeting in Brussels again on 16 and 17 December to lay down plans for an EU loan facility to set in stone bailouts such as the ones that were granted to Greece and Ireland.

Yesterday’s meeting also saw a revival of discussions on eurobonds after the head of the Eurogroup, Jean-Claude Juncker, and Italian Finance Minister Giulio Tremonti called on leaders to introduce common bonds to shield the troubled currency from speculators

To read this article in full, please click here. If you would like to leave a comment, please use the box below.

Author :