This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/go/rss/int/news/-/news/business-16720460
The article has changed 4 times. There is an RSS feed of changes available.
| Version 2 | Version 3 |
|---|---|
| Merkel says 'big rethink needed' | Merkel says 'big rethink needed' |
| (40 minutes later) | |
| Germany's Chancellor Angela Merkel has told the World Economic Forum that a "big rethink" is needed in the eurozone within the global economy. | Germany's Chancellor Angela Merkel has told the World Economic Forum that a "big rethink" is needed in the eurozone within the global economy. |
| "Structural reforms that lead to more jobs are essential," she told delegates at the Swiss resort of Davos. "Do we dare to be more European?" | "Structural reforms that lead to more jobs are essential," she told delegates at the Swiss resort of Davos. "Do we dare to be more European?" |
| The eurozone is still struggling with a sovereign debt crisis and is trying to agree reform to its political system. | The eurozone is still struggling with a sovereign debt crisis and is trying to agree reform to its political system. |
| But many want Germany and other nations to boost the size of their rescue fund. | But many want Germany and other nations to boost the size of their rescue fund. |
| The International Monetary Fund (IMF) wants the eurozone to inject more cash into its rescue fund. | The International Monetary Fund (IMF) wants the eurozone to inject more cash into its rescue fund. |
| The IMF wants the sum available for bailouts to grow beyond 500bn euros ($647bn; £416bn) to ensure talks between private creditors and Greece do not grind to a halt. | The IMF wants the sum available for bailouts to grow beyond 500bn euros ($647bn; £416bn) to ensure talks between private creditors and Greece do not grind to a halt. |
| The reserves could be bolstered by merging the temporary European Financial Stability Fund with the permanent European Stability Mechanism, according to IMF's managing director, Christine Lagarde. | The reserves could be bolstered by merging the temporary European Financial Stability Fund with the permanent European Stability Mechanism, according to IMF's managing director, Christine Lagarde. |
| "If the two together could make a common fund, it would be a very strong signal of confidence in Europe," she said. | "If the two together could make a common fund, it would be a very strong signal of confidence in Europe," she said. |
| The situation is urgent according to the IMF, which recently predicted that the economic growth rate in Europe could halve this year from an earlier estimate of 3.3% if the eurozone crisis remains unsolved. | The situation is urgent according to the IMF, which recently predicted that the economic growth rate in Europe could halve this year from an earlier estimate of 3.3% if the eurozone crisis remains unsolved. |
| Lessons learnt | Lessons learnt |
| Mrs Merkel disagrees with Ms Lagarde about what is needed. | Mrs Merkel disagrees with Ms Lagarde about what is needed. |
| "We have said right from the start that we want to stand up for the euro, but what we don't want is a situation where we are forced to promise something that we will not be able to fulfil," she said. | "We have said right from the start that we want to stand up for the euro, but what we don't want is a situation where we are forced to promise something that we will not be able to fulfil," she said. |
| "Let us take a moment to reflect what lessons we have learned from the global financial and economic crisis. | "Let us take a moment to reflect what lessons we have learned from the global financial and economic crisis. |
| "Is what we have learned sufficient? There's still room for improvement. There was a glaring lack of regulation that led to the predicament." | "Is what we have learned sufficient? There's still room for improvement. There was a glaring lack of regulation that led to the predicament." |
| Mrs Merkel said that the austerity reforms being enacted - currently being felt from the Irish Republic to Italy - had to be balanced with reforms of how Europe is governed. | Mrs Merkel said that the austerity reforms being enacted - currently being felt from the Irish Republic to Italy - had to be balanced with reforms of how Europe is governed. |
| Last year, the 17 nations that use the euro agreed to adopt reforms that would allow European institutions to punish nations that exceed their budget deficit limits. | Last year, the 17 nations that use the euro agreed to adopt reforms that would allow European institutions to punish nations that exceed their budget deficit limits. |
| Mrs Merkel also acknowledged "tensions" between countries that have adopted the euro and those that have not inside the European Union (EU). | Mrs Merkel also acknowledged "tensions" between countries that have adopted the euro and those that have not inside the European Union (EU). |
| Permanent arrangement | Permanent arrangement |
| At a summit in December, most of the EU vowed to add about 200bn euros to the IMF's resources - which in turn could be lent to stricken nations such as Greece or to the eurozone's bailout fund. | At a summit in December, most of the EU vowed to add about 200bn euros to the IMF's resources - which in turn could be lent to stricken nations such as Greece or to the eurozone's bailout fund. |
| The UK decided not to take part in a new treaty, leading the other nations to agree a "fiscal compact" between themselves. | The UK decided not to take part in a new treaty, leading the other nations to agree a "fiscal compact" between themselves. |
| Mrs Merkel would like the arrangement to become permanent. | Mrs Merkel would like the arrangement to become permanent. |
| "The main message of this fiscal compact that we are working on - the fact that every country introduces a debt ceiling in its constitution and that the European Commission and the European Court of Justice can control this - the main message is: we are ready for more commitment. We are not talking our way out of it," she said. | "The main message of this fiscal compact that we are working on - the fact that every country introduces a debt ceiling in its constitution and that the European Commission and the European Court of Justice can control this - the main message is: we are ready for more commitment. We are not talking our way out of it," she said. |
| Rather, Mrs Merkel said she would work to ensure the EU develops "political structures" to make the euro work properly. | Rather, Mrs Merkel said she would work to ensure the EU develops "political structures" to make the euro work properly. |
| "The message is that we are ready for more commitment. We are no longer making excuses," she said. | |
| "That is important because otherwise we will continue to lose credibility. | |
| "We have taken some steps closer to a fiscal union, but we can get faster, gain speed and become more decisive. | |
| "I'm absolutely convinced that we will get out of this crisis." | |
| The future of the world economy is high on the agenda as some of world's most powerful people gather in Davos. | The future of the world economy is high on the agenda as some of world's most powerful people gather in Davos. |
| They meet annually in the Swiss resort to discuss the state of the world. | They meet annually in the Swiss resort to discuss the state of the world. |