Nicolas Sarkozy calls crisis meeting with German leader Angela Merkel to guarantee 'future of Europe'
by Martin Newman, Daily Mirror 2/12/2011
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By CLINTON MANNING
NICOLAS Sarkozy last night announced a crisis meeting with Angela Merkel to help guarantee “the future of Europe”.
The French President will see the German Chancellor in Paris on Monday – ahead of Wednesday’s summit of all European leaders in Brussels.
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The pair will finalise Franco-German plans for tougher eurozone governance aimed at avoiding economic collapse and the end of the euro.
Mr Sarkozy declared: “Together we will make proposals to guarantee the future of Europe. Europe must be refounded.”
He said it was crucial that Brussels was handed more control over national budgets as countries like France were pushed towards recession.
Admitting that France’s 35-hour week and retirement age of 60 had been “serious mistakes”, he said the “new economic age” depended on debt reduction and spending cuts.
And he heralded the start of “a new economic cycle of debt reduction [that will] return the economy to work and production” – but warned it would only happen if eurozone members pulled together.
Mr Sarkozy said: “A true revolution has begun. For traders’ pay, for tax havens, nothing will ever be as it was before.
“The crisis is not over. To deny the crisis is to avoid any forward thinking. The huge pyramid of debt, previously hidden, is seen by all as a huge risk.”
His comments came as UK banks were urged to slash bonus pay-outs and curb dividends to shareholders, which totalled over £5billion last year.
The move is to increase their warchests in case the eurozone implodes.
The plea from Bank of England chiefs came just 24 hours after they agreed to help pump billions of dollars into the world’s financial system to prevent a second credit crunch.
But one expert warned last night that 30,000 City workers could lose their jobs by March even if the euro was saved.
About £6.7billion was paid in City bonuses last year, according to the Centre for Economic & Business Research. But CEBR leader Prof Doug McWilliams said: “The banks have had a hellish time so bonuses this year are going to be about 70% down on their peak in any case.
“The level of activity in the City has imploded and 10% of the workforce, around 30,000 jobs, will have gone in six months.”
Bank of England Governor Sir Mervyn King confirmed there were “clear signs of a credit crunch in the euro area” but claimed it had not spread to the UK – yet.
He was speaking after delivering the Financial Stability Report which one commentator said “read like an obituary”.
Last night, none of the major banks would commit to slashing bonuses and most refused to comment on the Bank of England’s demands. Bailed out banks Lloyds and Royal Bank of Scotland are still prevented from paying dividends.
RBS said it has not set aside any cash for bonuses. HSBC said it paid more in tax than bonuses last year, but it still handed £4billion to shareholders.
Read more: http://www.mirror.co.uk/news/top-stories..../#ixzz1fLequjiN
by Martin Newman, Daily Mirror 2/12/2011
Decrease font size Increase font size
By CLINTON MANNING
NICOLAS Sarkozy last night announced a crisis meeting with Angela Merkel to help guarantee “the future of Europe”.
The French President will see the German Chancellor in Paris on Monday – ahead of Wednesday’s summit of all European leaders in Brussels.
Advertisement >>
The pair will finalise Franco-German plans for tougher eurozone governance aimed at avoiding economic collapse and the end of the euro.
Mr Sarkozy declared: “Together we will make proposals to guarantee the future of Europe. Europe must be refounded.”
He said it was crucial that Brussels was handed more control over national budgets as countries like France were pushed towards recession.
Admitting that France’s 35-hour week and retirement age of 60 had been “serious mistakes”, he said the “new economic age” depended on debt reduction and spending cuts.
And he heralded the start of “a new economic cycle of debt reduction [that will] return the economy to work and production” – but warned it would only happen if eurozone members pulled together.
Mr Sarkozy said: “A true revolution has begun. For traders’ pay, for tax havens, nothing will ever be as it was before.
“The crisis is not over. To deny the crisis is to avoid any forward thinking. The huge pyramid of debt, previously hidden, is seen by all as a huge risk.”
His comments came as UK banks were urged to slash bonus pay-outs and curb dividends to shareholders, which totalled over £5billion last year.
The move is to increase their warchests in case the eurozone implodes.
The plea from Bank of England chiefs came just 24 hours after they agreed to help pump billions of dollars into the world’s financial system to prevent a second credit crunch.
But one expert warned last night that 30,000 City workers could lose their jobs by March even if the euro was saved.
About £6.7billion was paid in City bonuses last year, according to the Centre for Economic & Business Research. But CEBR leader Prof Doug McWilliams said: “The banks have had a hellish time so bonuses this year are going to be about 70% down on their peak in any case.
“The level of activity in the City has imploded and 10% of the workforce, around 30,000 jobs, will have gone in six months.”
Bank of England Governor Sir Mervyn King confirmed there were “clear signs of a credit crunch in the euro area” but claimed it had not spread to the UK – yet.
He was speaking after delivering the Financial Stability Report which one commentator said “read like an obituary”.
Last night, none of the major banks would commit to slashing bonuses and most refused to comment on the Bank of England’s demands. Bailed out banks Lloyds and Royal Bank of Scotland are still prevented from paying dividends.
RBS said it has not set aside any cash for bonuses. HSBC said it paid more in tax than bonuses last year, but it still handed £4billion to shareholders.
Read more: http://www.mirror.co.uk/news/top-stories..../#ixzz1fLequjiN
