G-20 economic powers set to ponder over the EURO zone debt crisis

Efforts are under way in Cannes to negotiate a suitable pathway out of the EURO zone debt crisis which is currently haunting the European Union. Leaders from the most powers economies in the world and representatives of the G20
are pondering over what can be done with the Greek financial crisis and save the continent of Europe from economic downturn. Conditions in countries such as England, Germany, France and Italy are already quite fragile in economic terms therefore interesting
developments can take place at the latest G20 summit.

Stock markets across the globe have been on the fall since the Greek government decided to hold a referendum over which path should their country choose to escape from the current financial downturn. Germany and France have been
leading the European pack of economies and their pleas to Greece thus far have had no concrete response. Trouble is brewing in Italy as well where the long term borrowing costs struck the 6.4 percent mark recently, something that the analysts have frowned
upon and termed unsustainable.

Furthermore Chancellor Merkel from Germany and President Sarkozy from France have pressurized Greece into a corner as they have already confirmed that Greece will not receive any of the IMF and the EU bail out money if the government
does not win the referendum which is due to be held on 4^th of December, 2011. If the Greek government fails to win this referendum in question, then there is a very good chance that the country will default and forced out of the euro zone.

 Sarkozy along with Merkel have already issued warnings and said, “We do not want to let the euro be destroyed, we do not want to let Europe be destroyed. The Greek people are free to choose, but we are accountable for the stability
of the euro zone.” On the other hand, Papandreou has affirmed that Greek’s democratic right will not be put to the side in this crisis and he has also said that he believes that the Greek people want to be a part of the euro zone.

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Posted by Hamza Jahangir on Nov 3 2011. Filed under World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry