Germany goes to the G20 summit in Cannes with financial regulation at the top of its official agenda. But behind that widely publicised aim, Chancellor Angela Merkel desperately needs to come away with a watertight solution to the Greek debt crisis.With the US and Britain showing no sign of budging in their opposition to an FTT, however, Merkel could well come away without a deal, but she will not be happy – and will not drop her own plan. She has said: "I don't think this is acceptable. We must ensure that financial-market actors share in the costs of fighting the crisis. I will push for this until it happens, at least in Europe, even better worldwide." Germany also wants the IMF to have greater resources to support the latest eurozone rescue deal, although there are doubts that the summit will produce definitive numbers. But getting some movement on Greece's rescue is vital to Merkel. She came away from a eurozone summit last week assuming she had a deal on a Greek bailout and she will want answers from Papandreou in Cannes. Before the talks the German chancellor stressed that Germany wanted to get the ball rolling on last week's agreed rescue package. "We want to put this plan into practice, but for this we need clarity." On the domestic political front, the latest opinion polls raise the pressure on Merkel over Greece. A poll in news magazine Stern asked Germans for their view of her handling of the eurozone crisis, with 46% saying she had not reacted well, while 42% approved of her actions. Given that tensions and undercurrents of prejudice between Germany and Greece go back decades, those perceptions will be hard to shift whatever Merkel comes away with this week. Even before Papandreou's shock referendum call, on overwhelming majority of Germans surveyed - 87% - said the eurozone crisis was not solved with last week's Brussels deal.
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Thursday, November 3, 2011
Germany goes to the G20 summit in Cannes with financial regulation at the top of its official agenda. But behind that widely publicised aim, Chancellor Angela Merkel desperately needs to come away with a watertight solution to the Greek debt crisis.With the US and Britain showing no sign of budging in their opposition to an FTT, however, Merkel could well come away without a deal, but she will not be happy – and will not drop her own plan. She has said: "I don't think this is acceptable. We must ensure that financial-market actors share in the costs of fighting the crisis. I will push for this until it happens, at least in Europe, even better worldwide." Germany also wants the IMF to have greater resources to support the latest eurozone rescue deal, although there are doubts that the summit will produce definitive numbers. But getting some movement on Greece's rescue is vital to Merkel. She came away from a eurozone summit last week assuming she had a deal on a Greek bailout and she will want answers from Papandreou in Cannes. Before the talks the German chancellor stressed that Germany wanted to get the ball rolling on last week's agreed rescue package. "We want to put this plan into practice, but for this we need clarity." On the domestic political front, the latest opinion polls raise the pressure on Merkel over Greece. A poll in news magazine Stern asked Germans for their view of her handling of the eurozone crisis, with 46% saying she had not reacted well, while 42% approved of her actions. Given that tensions and undercurrents of prejudice between Germany and Greece go back decades, those perceptions will be hard to shift whatever Merkel comes away with this week. Even before Papandreou's shock referendum call, on overwhelming majority of Germans surveyed - 87% - said the eurozone crisis was not solved with last week's Brussels deal.
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increasingly more likely" scenario that the euro crisis will not be resolved imminently.
The Prime Minister will travel today to the G20 summit but is expected to be little more than a bystander as key meetings take place between European and American leaders.
The British government has refused to contribute money to help the euro but European leaders are expected to lobby the Chinese, Russians and Brazilians for loans. An EU diplomat claimed last night that European leaders thought they had been misled by the Greek prime minister – as he had used the threat of a referendum during a eurozone summit last week in order to win concessions.
At a press conference Mr Sarkozy said: "Our Greek friends must decide whether they want to continue the journey with us.
"We cannot commit European taxpayers' money unless the rules unanimously adopted in Brussels are respected to the letter."
He was flanked by Mrs Merkel, who added: "The referendum will revolve around nothing less than the question: does Greece want to stay in the euro, yes or no?"
David Cameron said that the world was facing a "financial storm" as Greece may now be forced out of the single currency.
Simon Johnson, the former chief economist at the IMF said Europe was "looking straight into the face of a great depression".
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