Wednesday, September 14, 2011

Get A Grip: China Urges Eurozone Debt Action -14th Sept 2011

China and the United States have urged the eurozone to stop the debt crisis spreading, ahead of an emergency phone summit over Greece.

Talks between the Greeks, France and Germany are due this evening (1700 BST) as the markets surround Greece amid deepening concern of a default.

It is understood Nicolas Sarkozy and Angela Merkel will urge Greek prime minister George Papandreou to stick rigidly to the agreed austerity plan to ensure Greece meets the criteria for its second bailout.

Athens has warned it will run out of cash in a few weeks' time and needs 8bn euros next month to pay wages and pensions.

But investors are increasingly sceptical the debt debacle in the 17-nation currency area can be resolved.

Credit markets are factoring in a 90% chance Greece will default and Italy also remains under pressure.

However, the Italian Chamber of Deputies is expected to approve a 54bn euro austerity package this evening now prime minister Silvio Berlusconi's government has won a key confidence motion.

Despite the signs of political action today, there has been growing international alarm over events in the single currency area. Read More