The future of euro is in doubt because of the refusal of Britain

Britain does not help EU

In brief: Europe can not rely on financial support from Britain to keep the exchange rate of euro.

British Finance Minister Alistair Darling said on Sunday, that the kingdom can not and will not support the bailout funds the EU, designed to support the weak euro-zone economy. “For me it is very, very clear that if an invitation to create an emergency fund of euros, that is a matter of the euro area. What we do not do, and that we can not afford to do – so this is to support the euro … the responsibility for keeping euro lies with countries handling a common currency “, – says Darling.

“I think it is important not what we are doing everything in our power to stabilize the markets, and show that we are passing through such a difficult period” – the minister added.

Today in Brussels opened an urgent meeting of European finance ministers. On the agenda – the issue of providing financial assistance to Greece and to create for this purpose, a European Stabilization Fund.

Recall the complexity in the euro area have been compounded by worsening financial crisis in Greece, the size of public debt that exceeded 100 percent of GDP and the budget deficit – 12 percent of GDP. In order to prevent default in Greece, the EU together with the IMF decided to send to Athens for a three-year loan of 110 billion euros, 80 billion of which must provide the EU.

One of the consequences of this decision was the growth of public debt creditors themselves among the EU countries. Currently, 13 out of 16 countries in the euro area member states themselves are at risk due to the excess of the limit of budget deficit.

Ukrainian Globalist
2010-05-09 22:45, Economics.

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