Euro is up on hope of deal
By STEVE HAWKES, Business Editor
Published: 21 Jul 2011
Add a comment Add a comment (34)
THE euro recovered slightly today as Europe's leaders hold emergency talks to solve the Greek debt crisis threatening to blow apart the single currency.
It rose against the dollar as heads of state agreed that interest rates on bailout loans for Greece, Ireland and Portugal will be lowered. They can also be paid back over a longer period, drafts show.
The 17 leaders of the Eurozone countries have been urged to "do what it takes" to rescue the single currency following a difficult number of weeks on money markets.
Analysts have warned that Britain would feel the impact if they decide that Greece has to default on some of its debts.
Video: Days to save the Euro
THE euro will be blown apart unless leaders act to fix the debt crisis this week
Sky News
UK banks could lose around £2.5billion in Greek government bonds. And we could also face higher interest rates on our own debts as investors lose confidence in the EU's financial security.
Plans could include a £26BILLION levy on eurozone banks to raise funds for Greece.
German chancellor Angela Merkel and French president Nicolas Sarkozy reached an agreement last night over a new bailout plan for the stricken country that will "include participation" of banks.
No further details were released, but banks threatened to sue if the levy was imposed.
Economists warned a day before the Brussels summit that the euro will be blown apart unless leaders act to fix the debt crisis this week.
Agreement ... French President Nicolas Sarkozy and German Chancellor Angela Merkel
Agreement ... French President Nicolas Sarkozy and German Chancellor Angela Merkel
In an open letter, the European-wide body Centre for Economic Policy Research said the "very survival" of the currency was at stake.
It said: "Deciding not to decide could mark the end of the eurozone as we know it."
Italy's Tito Boeri, one of 12 academics to sign the CEPR letter, told The Sun: "There has been a lack of initiative by Europe."
He said the bailout fund should be doubled to £1TRILLION.
European Commission president Jose Barroso said consequences will be felt "in all corners of Europe and beyond" if no action was taken.
The Bank of England has signalled interest rates won't rise until the crisis ends. Minutes from its July meeting said the outlook had got worse.
Experts predicted rates wouldn't rise until February 2012 at the earliest.
Read more: http://www.thesun.co.uk/sol/homepage/news/3706596/The-Euro-will-be-blown-apart-unless-leaders-act-to-fix-the-debt-crisis-this-week-economists-warn.html#comment-rig#ixzz1SppHa921
By STEVE HAWKES, Business Editor
Published: 21 Jul 2011
Add a comment Add a comment (34)
THE euro recovered slightly today as Europe's leaders hold emergency talks to solve the Greek debt crisis threatening to blow apart the single currency.
It rose against the dollar as heads of state agreed that interest rates on bailout loans for Greece, Ireland and Portugal will be lowered. They can also be paid back over a longer period, drafts show.
The 17 leaders of the Eurozone countries have been urged to "do what it takes" to rescue the single currency following a difficult number of weeks on money markets.
Analysts have warned that Britain would feel the impact if they decide that Greece has to default on some of its debts.
Video: Days to save the Euro
THE euro will be blown apart unless leaders act to fix the debt crisis this week
Sky News
UK banks could lose around £2.5billion in Greek government bonds. And we could also face higher interest rates on our own debts as investors lose confidence in the EU's financial security.
Plans could include a £26BILLION levy on eurozone banks to raise funds for Greece.
German chancellor Angela Merkel and French president Nicolas Sarkozy reached an agreement last night over a new bailout plan for the stricken country that will "include participation" of banks.
No further details were released, but banks threatened to sue if the levy was imposed.
Economists warned a day before the Brussels summit that the euro will be blown apart unless leaders act to fix the debt crisis this week.
Agreement ... French President Nicolas Sarkozy and German Chancellor Angela Merkel
Agreement ... French President Nicolas Sarkozy and German Chancellor Angela Merkel
In an open letter, the European-wide body Centre for Economic Policy Research said the "very survival" of the currency was at stake.
It said: "Deciding not to decide could mark the end of the eurozone as we know it."
Italy's Tito Boeri, one of 12 academics to sign the CEPR letter, told The Sun: "There has been a lack of initiative by Europe."
He said the bailout fund should be doubled to £1TRILLION.
European Commission president Jose Barroso said consequences will be felt "in all corners of Europe and beyond" if no action was taken.
The Bank of England has signalled interest rates won't rise until the crisis ends. Minutes from its July meeting said the outlook had got worse.
Experts predicted rates wouldn't rise until February 2012 at the earliest.
Read more: http://www.thesun.co.uk/sol/homepage/news/3706596/The-Euro-will-be-blown-apart-unless-leaders-act-to-fix-the-debt-crisis-this-week-economists-warn.html#comment-rig#ixzz1SppHa921