Merkel wants to avoid "failure of control of Greece"
After several days of hesitation, the main leaders of the euro area are put together in the front line Tuesday in an attempt to appease the debt crisis. The offensive is part of the first German chancellor, who tried to silence the cacophony in his ruling coalition. "The priority is to do everything to prevent a failure of control of Greece because it affects not only Greece but the risk that affects other countries would be very high," said Angela Merkel. A very strong focus towards members of his coalition, particularly the Vice-Chancellor in charge of Economy, Philipp Roesler, who had set fire to the powder Monday citing a lack of Athens.
True to his style, though Chancellor has not completely closed the door on this idea, stating that the priority was to avoid it."Everything must be done to keep the euro area united politically, because otherwise we could face a domino effect." Angela Merkel has also kept the pressure on Athens, welcoming the signal showing that "the Greek government has recognized the situation and does what he must do. " Finally, after a meeting with the Prime Minister of Finland Jyrki Katainen, it calmed the game on the ongoing negotiations between Greece and Finland, which requires collateral in exchange for his participation in the background of help. "I am optimistic that we find an agreement," she said.
Limit catches of speech
The statements made by German Chancellor multiple contrast with the silence of Nicolas Sarkozy. The French president received Tuesday the president of the European Union, Herman Van Rompuy to a point on the situation, with nothing to filter their conversation.Side of the French government, it is estimated that in the context of extreme nervousness of the markets, which eventually rebounded Tuesday after closing fell sharply at the opening, limit the public speaking up, not to give the serious crisis that Europe wants to avoid. Do not think of a panic. Within the State, it still insists that "banks are strong," they are "fully capable" to absorb the losses to Greece and that "we are far from the situation in 2008, where the interbank market was closed. Today, there is no liquidity problem. "
On the side of the Ministry of Economy, we want even more reassuring: "rumors do not affect the real economy."Therefore, there is "no reason" to think about re-financing of the Society of the French economy (SFEF) or the Company of equity of the state (SPPE), created in the heart of the financial turmoil in 2008 to rescue banks.
As part of nationalizing banks, as the idea begins to circulate, "it is triple no!" Says Minister of Economy, Baroin, Le Figaro. The Government's priority is the speedy implementation of the plan July 21. "What must be avoided, an environment is anxiety sustainable. Because here, the banks would start to select their distribution of credits, "we nevertheless recognize Bercy. A topic that will be at the heart of the Eurogroup expected Friday in Poland. This meeting of European finance ministers promises crucial. Further indication of the challenge, the U.S. Treasury Secretary Tim Geithner will participate exceptional.According to European sources, it should call on this occasion the Europeans not to procrastinate in managing the crisis and look closely at increasing the capacity of the SFEF to deal with bank recapitalization.
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