This article is from the source 'guardian' 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.guardian.co.uk/business/2012/jan/31/eurozone-debt-crisis-summit-greece
The article has changed 15 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Eurozone crisis live: Greece back in spotlight after EU summit | Eurozone crisis live: Greece back in spotlight after EU summit |
| (40 minutes later) | |
| 9.08am: Eurozone countries will be barred from receiving financial help from the European Stability Mechamism unless they have already endorsed the fiscal compact. That is meant to encourage leaders to sign up quickly. | |
| City analyst Gary Jenkins of Swordfish Research finds it somewhat ironic, though: | |
| We may have the novel situation where countries are being provided with monies to not only pay for the normal running of government but also their fines for fiscal indiscipline. | |
| 8.59am: Elisabeth Afseth, analyst at Investec , despairs at the failure of European leaders to achieve more yesterday. | |
| Afseth argued that rather than showing "common purpose and direction", EU leaders treated us to another display of discord. Germany's aborted proposal to impose a European commissioner on Greece, and France's determination to launch a financial transaction tax on its own, left Europe looking fragmented. What a shame, she added, that they didn't achieve real progress by agreeing to enlarge the ESM. | |
| In a reseatch note, Afseth wrote: | |
What we got yesterday we got more bickering at the sideline, agreement on a largely irrelevant treaty while the issue of the size of the ESM/EFSF was left till March. They could have used the opportunity to boost the size of the rescue fund now building on the more positive market sentiment of late and in the process increased the chance of getting additional support from the IMF. | |
| I guess it could be described as a consistent approach to the crisis; a German focus on austerity and no agreement on anything else. | |
| 8.34am: If you're catching up on events in Brussels yesterday, here are the key points from the summit: | |
| • 25 countries endorsed the fiscal pact. They agreed to enshrine balanced budget legislation into their national law, with annual structural deficits capped at 0.5% of GDP. Transgressors face penalties of 0.1% of GDP, with fines being added to Europe's bailout fund, the European Stability Mechanism (ESM). The UK and the Czech Republic declined to sign. | |
| The new Treaty on Stability, Coordination and Governance (SCG) will come into force once it has been passed by the parliaments of at least 12 countries that use the euro. | |
| • Euro area leaders confirmed that they will reassess whether the ESM, and its forerunner the European Financial Stability Facility (EFSF), have sufficient resource. They still plan to bring the ESM into force in July 2012. | |
| • EU leaders agreed to a new drive to stimulate growth and create employment across the region, particularly for young people. Unused development funds will be used to create jobs. They also vowed to help small and medium enterprises to get access to credit, and to use the Single Market as a key driver for Europe's economic growth. | |
| • Leaders also opposed the suggestion that a 'commissioner' should be installed in Greece to ovesee its budget decisions. French president Nicolas Sarkozy warned that this would be undemocratic, as "the recovery process in Greece can only be enacted by the Greeks themselves." | |
| 8.13am: European stock markets have opened higher this morning, but British banks are still under pressure. | 8.13am: European stock markets have opened higher this morning, but British banks are still under pressure. |
| The FTSE 100 has risen 48 points to 5719 (up 0.8%). with traders saying there is some relief that progress was made in Brussels yesterday, and optimism over the Greek debt talks. | The FTSE 100 has risen 48 points to 5719 (up 0.8%). with traders saying there is some relief that progress was made in Brussels yesterday, and optimism over the Greek debt talks. |
| ARM Holdings (+6) and BSkyB (+2.9%) are leading the risers, after posting decent results this morning. But Lloyds (-2.7%), RBS (-1.2%) and Barclays (-0.5%) are among the biggest fallers though, defying a recovery in other European financial stocks. | |
| Across Europe, Italy's FTSE MIB is 1.1% higher, Germany DAX is up 0.7% and the French CAC gained 1%. | Across Europe, Italy's FTSE MIB is 1.1% higher, Germany DAX is up 0.7% and the French CAC gained 1%. |
| 7.55am: On the economic front, the latest jobless statistics will show the state of the employment markets in Germany and Italy. There's also a couple of debt auctions to watch out for. Here's an agenda: | 7.55am: On the economic front, the latest jobless statistics will show the state of the employment markets in Germany and Italy. There's also a couple of debt auctions to watch out for. Here's an agenda: |
| • German unemployment data for January - 9am GMT / 10am CET • Italian unemployment data for December - 9am GMT / 10am CET • Eurozone unemployment data for December - 9am GMT / 10am CET • Belgium auctions short-term debt - 10am GMT • Hungary auctions short-term debt - morning.... | • German unemployment data for January - 9am GMT / 10am CET • Italian unemployment data for December - 9am GMT / 10am CET • Eurozone unemployment data for December - 9am GMT / 10am CET • Belgium auctions short-term debt - 10am GMT • Hungary auctions short-term debt - morning.... |
| + Talks continue in Greece over its debt restructuring | + Talks continue in Greece over its debt restructuring |
| 7.45am: Good morning all, and welcome to another day of rolling coverage of the eurozone crisis. | 7.45am: Good morning all, and welcome to another day of rolling coverage of the eurozone crisis. |
| Today we'll be digesting the impact of yesterday's EU summit. The fiscal compact is agreed (although the UK and Czech Republic are both refusing to sign up), and leaders have agreed that the European Stability Mechanism will come into effect from July. | Today we'll be digesting the impact of yesterday's EU summit. The fiscal compact is agreed (although the UK and Czech Republic are both refusing to sign up), and leaders have agreed that the European Stability Mechanism will come into effect from July. |
| We'll be finding out whether economists, City analysts and political experts believe the decisions taken in Brussels will help Europe tackle the crisis. What do you think?... | We'll be finding out whether economists, City analysts and political experts believe the decisions taken in Brussels will help Europe tackle the crisis. What do you think?... |
| ...And how much trouble is David Cameron in with his eurosceptic backbenchers, having agreed that the European court of justice can police the fiscal compact? | ...And how much trouble is David Cameron in with his eurosceptic backbenchers, having agreed that the European court of justice can police the fiscal compact? |
| As usual, we'll be tracking events in Greece (where talks between the government and its creditors are still continuing), and Portugal. | As usual, we'll be tracking events in Greece (where talks between the government and its creditors are still continuing), and Portugal. |