Follow Us

Follow us on Twitter  Follow us on LinkedIn

20 May 2012

FT: EU summit to raise pressure on Merkel

European leaders are drawing up a series of crisis-fighting proposals to raise at an informal EU summit that have in the past been rejected by Germany, putting further pressure on Chancellor Angela Merkel.

The proposals, which could include empowering the eurozone’s €500 billion rescue fund to recapitalise directly faltering European banks and commonly backed eurozone bonds, have been backed by some leaders in the past but forced off the agenda by the German chancellor’s objections.

François Hollande’s election in France has shifted the terms of the eurozone crisis debate, giving advocates of such measures – who include José Manuel Barroso, president of the European Commission, and Mario Monti, Italian prime minister – a powerful new ally. It also reflects the growing belief among some leaders that instability in Greece necessitates revisiting the crisis procedures to ensure they are sufficient to deal with a Greek eurozone exit.

European officials cautioned that Wednesday’s summit would focus on proposals to spur growth rather than crisis-response measures. But one senior European official said the Greek crisis has spurred “parallel” discussions, particularly on ways to shore up Europe’s banking sector.

Full article (FT subscription required)

© Financial Times

< Next Previous >
 Hover over the blue highlighted text to view the acronym meaning
Hover over these icons for more information

Add new comment