Tonight will see the 18th emergency meeting of European Union leaders. It is hoped that decisive action will be taken on the ongoing Euro crisis, with specific attention focusing on the Greek problem.
Hopes are not high that the leaders will come to a successful solution to the crisis. Many observers believe that the meeting will once again prove fruitless and as British Prime Minister David Cameron once said ‘the can will be kicked further down the road’.
The editor of the BBC’s News night said; “I am sick of comment and analysis – without action we are going in circles as money ebbs out of the system.”
The markets have reacted negatively today because of the doubts over a solution being reached. Confidence in the EU leadership is at an all time low. The new French President Francois Hollande is set to confront the Germans and suggest the issuing of common Euro bonds. The tying together of the euro areas debt has been fiercely opposed by Germany but is backed by the Italian Prime minister Mario Monti and the president of the European commission Jose Manuel Barroso.
The German deputy finance minister Steffen Kampeter said; “Euro bonds are the wrong prescription at the wrong time with the wrong side-effects,”
Greece continues to be the main issue facing the zone. Leaders and ministers are continuing to be indecisive over the issue. Many analysts think that Greece may abandon the austerity measures and be forced out of the euro.
Head of the IMF Christine Lagarde said; “The Greek population has made huge efforts. But they have more to do. There are more structural reforms to be had, there is more tax to be collected and that has a price. It may well be that members of the Eurozone will be prepared to support Greece to keep the country and its population within the zone.”
Other key issues set to be discussed at tonight’s meeting are how the EU nations will stimulate jobs and growth. Youth unemployment continues to rise and no clear plans on how to reduce the terrible figures have been revealed. Tonight’s meeting must generate some action from the EU leaders, who for the past five years have continually been unable to take firm action to halt the Euro’s slide into economic chaos. If they don’t come to an agreement on some sort of plan then the Euro looks set to continue its downward spiral against the other main currencies.
The Pound to Euro exchange rate is currently trading at 1.241
The Pound to US Dollar exchange rate is currently trading at 1.570
The Euro to US Dollar exchange rate is currently trading at 1.264
The Euro to Pound exchange rate is currently trading at 0.805