Wednesday, September 14, 2011

Leaders In Conference Call To Save their wage.....Europe - 14th Sept 2011

European leaders are to hold an emergency phone summit over 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.

Ahead of the meeting, US Treasury Secretary Timothy Geithner moved to bolster confidence by claiming that European leaders are ready to do more to support the euro.

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.

Investors have been 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.

Chinese Premier Wen Jiabao said: "What we have to take note of now is to prevent the sovereign debt crises from spreading and expanding further." Read More