France and Germany engaged in hard talk over halting euro zone crises strategy

France and Germany engaged in hard talk over halting euro zone crises strategy

Europe’s two main countries France and Germany have been engaged in talks to sort the role of European Central Bank (ECB) in resolving euro economic zone crises.

High ranked officials from both countries have negotiating over the issues to quickly resolve the matter that have plagued Europe.

After a meeting in Paris, French government spokeswoman Valerie Pecresse said, "The ECB’s role is to ensure the stability of the euro, but also the financial stability of Europe. We trust that the ECB will take the necessary measures to ensure financial
stability in Europe.”

France has urged for a stronger ECB action. It will add on to the global pressure claimed by the United States President Barack Obama.

After a modest purchase of bonds the ECB has failed to settle the rising economic stress in the European markets.

The instability of bond markets is spreading all over Europe. Percentage over Italian bonds for 10-year time period have risen to 7 percent, which makes it completely unaffordable in long term.

The crises have also affected the bond yields in France, Netherlands and Austria. Including these countries with Germany form the core of the euro zone, that is facing rising percentage.

The crises also affected the Asian shares and the euro to fall. The drop in the value was seen due to Europe’s inability to control the crises and its increasing affects.

French Finance Minister, Francois Baroin repeated the view of meeting held in Paris. It is that euro zone’s EFSF bailout fund should have a banking license, which opposed by Germany.

This will help to borrow funds from ECB with an extra firepower in value to encounter the crises.

Baroin said, "The position of France … is that the way to prevent contagion is for the EFSF to have a banking licence.”

However the German Chancellor, Angela Merkel expressed that Germany will resist the intensive role of ECB in euro zone crises.

Merkel said after a talk with Irish Prime Minister Enda, "The way we see the treaties, the ECB doesn’t have the possibility of solving these problems.”

Germany claims it in reference with the European Union rules that prohibit the action proposed.

The supposed solution to crises is to act upon the agreed economic reforms in as decided by European Union. Also by building a closer European political union will help to meet deforms.

Short URL: https://www.newspakistan.pk/?p=3964

Posted by Samer Ahmed on Nov 17 2011. Filed under Europe, World. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry