EU SUMMIT | GROWTH vs AUSTERITY

Striking the balance between budget austerity and reviving lost growth was the focus as EU leaders met in Brussels earlier for the start of a two day summit. Despite more grim news on the job front – with unemployment reaching a record high in the eurozone – Germany’s Chancellor insisted things were back on track, ahead of a new fiscal treaty.

“This is an important step. We have shown here that we are able to stabilise the European Union. We have made a major breakthrough, which provides the chance for more political union,” Germany’s Angela Merkel said.

With the exception of the Czech Republic and the UK, which both refused to take part in the German driven fiscal pact, 25 other EU countries will sign.

Its aim, to get a tighter control of the bloc’s debts.

Unlike previous summits leaders were keen to stress this was not a crisis meeting with provisional approval of Greece’s latest rescue and a flood of cheap ECB money offering some respite.

Nonetheless, the latest job data remains a deep source of concern, particularly for Spain. Behind closed doors the country’s new leaders are reported to be pleading for more realistic budget targets.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s