'Everything possible' to be done to protect the eurozone

 
German Chancellor Angela Merkel and Italian Prime Minister Mario Monti on 4 July Angela Merkel and Mario Monti discussed the eurozone crisis on Sunday

German Chancellor Angela Merkel and Italian Prime Minister Mario Monti have said they will do "everything possible to protect the eurozone".

The comments came in a joint statement following a telephone conversation on Sunday.

They echo remarks from French President Francois Hollande and European Central Bank (ECB) President Mario Draghi.

It has increased speculation that the ECB could resume its programme of buying up Spanish bonds.

The remarks came the day before a visit from US Treasury Secretary Timothy Geithner.

On Monday, he will be meeting German Finance Minister Wolfgang Schaeuble before flying to Frankfurt to meet Mario Draghi.

Markets rallied on Thursday following Mr Draghi's supportive comments.

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The US Treasury Secretary's whirlwind visits to the people who matter in eurozone monetary policy has raised speculation still further that policy is changing quietly, with German approval. The difficulty is that if it's not, last week's stock market optimism might be suddenly deflated.”

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The BBC's Stephen Evans in Berlin said that Mr Geithner's whirlwind visit combined with the remarks from eurozone leaders had raised speculation still further that a quiet change of policy was underway.

Eurozone leaders agreed in a summit at the end of June that they would allow their rescue fund to intervene on bond markets.

But since then there has been growing doubt as to whether the ECB could buy bonds from troubled economies if the eurozone's richest country, Germany, opposed the policy.

There may be further signs of the support that some eurozone economies need on Monday, when Italy auctions three, five and 10-year bonds.

Monday will also see the release of the first estimate of whether Spain's economy grew or contracted in the three months from April to June.

It is expected to show that Spain's recession continued.

 

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  • rate this
    +1

    Comment number 451.

    @441 (and 436)
    A bit of both I think
    @447
    True
    Things will change but as in the old adage that armies always train for the war they last fought, people can only see things changing in a way they can reference. The truth is when change comes it will be nothing like how people expect but all will go "oh, of course!"

  • rate this
    +1

    Comment number 450.

    @439

    Argentina, the Iraq, Afghanistan and FYR don't have nuclear weapons. It was always in our hands to stop the escalation before that and we didn't lose any of those wars. An all our war with someone who refuses to lose and has those weapons would be a very different story.

    No one wages war on a nuclear capable country. Never ever. Now you see why Iran are so keen to get them.

  • rate this
    +5

    Comment number 449.

    The EU has not prevented any war, most nations were too broke and had no appetite for war after ww2. Taking away the independence of nations, trying to force all cultures into a one size fits all and the dominance of one or two countries however will breed resentment - one only has to look at the Soviet and Yugoslav models to see how this could go. The signs of discontent are already there

  • rate this
    +2

    Comment number 448.

    Greece and Spain were great nations like England long before the EU existed and the bond markets existed what the ordinary people across the whole of Europe need to do is take over their nations from their own elites and tell the EU bureaucrat elites and the finacial elites to do one.Add your comment...

  • rate this
    -2

    Comment number 447.

    Pathetic!!!

    Armchair revolutionaries predicting violent strife followed by errrr...justice and prosperity.

    When has whining bitterly over their keyboards ever changed anything? The most likely event is not a popular revolt against the mechanisms of capitalism. Rather a revulsion at bailing out, ad infinitum, Club Med countries who have voted themselves a high old time over the past 20 years.

  • rate this
    -2

    Comment number 446.

    439. SwampPuppet

    Nuclear deterrence did keep the peace during the cold war. It had no impact on the Falklands, Gulf Wars, Former Yugoslavia, and other conflicts. It did keep the peace during the cold war though, and still serves a purpose.

    Without Political Union we'd be following some madman, gleefully murdering people for some invented cause.

  • rate this
    0

    Comment number 445.

    Politicians have delayed taking actions to remedy the Eurozone for 18months.No solutions being touted will have any impact on the situation. Fed up with the waffle in the press from politicians about support, time to realise recovery

  • rate this
    +2

    Comment number 444.

    @437

    Europhiles like you keep spouting the same old claptrap. The fact of the matter is if Germany doesn't get its own way they will come out fighting.

    http://www.telegraph.co.uk/news/worldnews/europe/germany/8851912/Merkel-wins-rescue-fund-vote-after-raising-spectre-of-war.html

    The only thing keeping the peace was prosperity, now that’s gone it's every man for himself.

  • rate this
    +5

    Comment number 443.

    435.Total Mass Retain
    --
    You are getting repetitive, TMR. I detect a note of Van Rompuy style desperation.

    Trust me, I can see how bad it is going to be.

    It is a case of if we continue with Plan A, we will go down with the EU. Plan B has the same symptoms, but it at least sees British interests uppermost in managing British problems.

    The quicker we start the treatment, the sooner we recover.

  • rate this
    +4

    Comment number 442.

    You know what is sad?That even if every single person in the world wrote a letter to their representative member of parliament about their dissatisfaction with this whole bank/EU/slavery/war thing, nothing would change.Proof that democracy is a myth wrapped in lies.Two choices are left for the people at this point.Debt, slavery and hunger or revolution, freedom and prosperity.There will be blood..

  • rate this
    -2

    Comment number 441.

    436 Karen Dark "This is a failed project; only brutal political will is holding up what is already a corpse."

    It's not the Euro that's the failed project, it's the whole credit driven quantitively eased system that's falling apart.

  • rate this
    +6

    Comment number 440.

    Centres for Stuff; don't you believe it. There will be outbreaks of civil strife in many nations, if not all, once the people get to realise they are stone broke. Immigration is destroying the UK, Poles and Romanians couldnt give a fig for the unemployed Brits; and you think they won't fight each other? You aint seen nothing yet. The worst is still to come.

  • rate this
    -1

    Comment number 439.

    @433

    Nuclear weapons and mutually assured destruction stops us killing each other.

    The EU is about something else entirely. Money. Its about making you more competitive, taking lower and lower wages. Its about getting foreigners to compete with westerners in their own back yard to maximise profits and reduce labour costs.

  • rate this
    +4

    Comment number 438.

    Total Mass Retain et al
    You are forgetting history. In the past people have sacrificed EVERYTHING for democracy and to step away from tyranny. The EU is moving daily further away from democracy and I would guess that many in Greece and Spain feel like they are living in tyrannical circumstances.

  • rate this
    -2

    Comment number 437.

    "karen dark
    Who said the EU stops us killing each other?"

    The economic prosperity and promotion of democratic principles across Europe (and the two are strongly coupled) has tied the economies of the European great powers tightly so war between them becomes inconceivable. NATO may well have held back external threats, but not the internal rivalries that would be there without cooperation.

  • rate this
    +6

    Comment number 436.

    "They will do everything possible to protect the eurozone".... even if it means impoverishing one country after another, which is what is happening right under your noses. Who said the EU stops us killing each other? You still swallowing that propaganda? This is a failed project; only brutal political will is holding up what is already a corpse. They don't care about the people. Wait and see.

  • rate this
    -6

    Comment number 435.

    Those who think leaving the EU will be beneficial labour under the delusion that there is some option, a nirvana, by which we keep all the "good bits" of being in the EU whilst dropping all the "bad bits". Sorry, but that option won't be on the table. It'll be a range of options from Norway/Swiss to "fortress britain". Some EUphobes clearly want the latter and should explain why we would benefit.

  • rate this
    +1

    Comment number 434.

    429. Dr_Ads

    Norway and Switzerland are subject to all EU legislation and pay the EU for access to the single market but have no say in setting the EU rules. Hardly democratic! The are also members of Schengen so have less control over their borders than the UK does. Citing a UK tax haven and two near autocratic developing countries as examples we could emulate is not a very good argument!

  • rate this
    -6

    Comment number 433.

    I think we forget how terrible another Europe wide war would be.

    WWI was in part caused by dreams of Nations to extend their borders, WWII owed much to the Versailles treaty, and rather more to the lack of Political Union within Europe.

    The EU stops us killing each other. Forget big piles of money, being alive beats being rich any day of the week.

  • rate this
    +1

    Comment number 432.

    The generations of young British men who died in two world wars didn't even know what it was like to have a fiver in their pockets- but we all have short memories and 'bitch and moan' about how bad it is now! (??).

 

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