E.U. Leaders Still Disagree as Crisis Simmers
Chancellor Angela Merkel of Germany met with resistance at home to her austerity-only position even as Prime Minister Mario Monti of Italy gave a different account of Wednesday’s summit meeting than was offered by the Luxembourg prime minister, Jean-Claude Juncker.
Juncker to Step Down as Head of Eurogroup
Jean-Claude Juncker, prime minister of Luxembourg and head of the Eurogroup assembly of euro zone finance ministers, confirmed that he will step down in the middle of the year from the post he has held for seven years.
Spain Faces Tough Haul
Already mired in debt and unemployment, Spain has been told that the target deficit rate of 5.8% of GDP that new Prime Minister Mariano Rajoy declared only 10 days ago is inadequate, and Madrid must seek a faster reduction in its deficit.
No Bailout for Greece–Yet
Greece’s hard-won agreement from political leaders in Athens was rejected late Thursday as not tough enough. Instead, Greece was told to go back to the drawing board.
Greece Missed Bailout Deadline: EU Commission
Greece has already missed its Monday deadline to come up with a deal to satisfy the conditions for its second bailout, according to the European Union, and has failed to make the decisions that would finish the deal.
Private Bondholders' Offer on Greek Bonds Rejected
Private bondholders had their holdout position of requiring a 4% interest rate on new Greek bonds rejected Monday, as eurozone finance ministers said the offer was not good enough.
Eurozone Ministers May Seek IMF Help
Although eurozone ministers agreed Tuesday to boost the value of the rescue fund, they acknowledged that they might call on the International Monetary Fund for help to do so after Italy's borrowing costs soared nearly to 8%, a euro lifetime high.
Euro More Important Than Greece: Eurozone
As eurozone ministers pressured Greek Prime Minister George Papandreou to drop plans for an announced referendum on the country's latest negotiated rescue package, they made their priorities clear at a midnight news conference following a grueling crisis meeting in Cannes. Their pressure apparently worked as Papandreou backed off his call...
The 50% Solution: Greek Rescue
The solution entails a 50% write-down of Greek debt by banks, a boost in the euro zone’s rescue fund to $1.4 trillion and a substantial recapitalization of banks.
Greek Debt Writedown May Top 60%
A debt crisis summit meeting of European leaders scheduled for October 18 was pushed back to October 23 amid a disagreement about the amount of Greek debt to be written down.