01:37 GMT, 24 May 2012
Germans ready to boot Greece out of the euro ahead of emergency summit
Europe was facing the prospect of a devastating financial crisis last night, as Greece teetered on the brink of a chaotic exit from the single currency.
Stock markets across Europe plunged after the mighty Bundesbank warned that it would be better to let Greece leave the euro than give its crippled
economy any more cash.
At an emergency summit in Brussels last night, David Cameron pleaded with dithering European leaders to end the ‘fudge’ over the euro crisis. But
Mr Cameron’s words appeared to have gone unheeded last night as German Chancellor Angela Merkel hinted that Germany was preparing to cut
Greece loose unless it agrees to stick to the tough terms of last year’s bailout deal.
<a href="http://s1267.photobucket.com/albums/jj559/365Wildfire/?action=view&current=article-2148772-11F10044000005DC-94_634x417.jpg" target="_blank"><img src="http://i1267.photobucket.com/albums/jj559/365Wildfire/article-2148772-11F10044000005DC-94_634x417.jpg" border="0" alt="Photobucket"></a>
Speaking on arrival in Brussels last night, Mrs Merkel rejected calls for the introduction of so-called Eurobonds to ease the debt crisis. The German
Chancellor said the idea, which would effectively see Germany underwrite the eurozone’s vast debts, was illegal under EU law and was ‘not a contribution
to stimulating growth’.
Her stance is a major blow to France’s new socialist President Francois Hollande who had insisted that Eurobonds were on the agenda of last night’s summit.
But it is also a snub to Mr Cameron, who had earlier told MPs that the German stance was ‘changing to an extent’.
In a separate blow it emerged that all eurozone countries have been ordered to draw up contingency plans for a Greek exit.
The Bundesbank warnings sparked panic on stock markets, with £35billion wiped off the FTSE 100. Italy’s stock market fell 3.7 per cent, while Spain’s
dropped 3.2 per cent.
The euro also fell to a two-year low against the dollar.
Germans ready to boot Greece out of the euro ahead of emergency summit
Europe was facing the prospect of a devastating financial crisis last night, as Greece teetered on the brink of a chaotic exit from the single currency.
Stock markets across Europe plunged after the mighty Bundesbank warned that it would be better to let Greece leave the euro than give its crippled
economy any more cash.
At an emergency summit in Brussels last night, David Cameron pleaded with dithering European leaders to end the ‘fudge’ over the euro crisis. But
Mr Cameron’s words appeared to have gone unheeded last night as German Chancellor Angela Merkel hinted that Germany was preparing to cut
Greece loose unless it agrees to stick to the tough terms of last year’s bailout deal.
<a href="http://s1267.photobucket.com/albums/jj559/365Wildfire/?action=view&current=article-2148772-11F10044000005DC-94_634x417.jpg" target="_blank"><img src="http://i1267.photobucket.com/albums/jj559/365Wildfire/article-2148772-11F10044000005DC-94_634x417.jpg" border="0" alt="Photobucket"></a>
Speaking on arrival in Brussels last night, Mrs Merkel rejected calls for the introduction of so-called Eurobonds to ease the debt crisis. The German
Chancellor said the idea, which would effectively see Germany underwrite the eurozone’s vast debts, was illegal under EU law and was ‘not a contribution
to stimulating growth’.
Her stance is a major blow to France’s new socialist President Francois Hollande who had insisted that Eurobonds were on the agenda of last night’s summit.
But it is also a snub to Mr Cameron, who had earlier told MPs that the German stance was ‘changing to an extent’.
In a separate blow it emerged that all eurozone countries have been ordered to draw up contingency plans for a Greek exit.
The Bundesbank warnings sparked panic on stock markets, with £35billion wiped off the FTSE 100. Italy’s stock market fell 3.7 per cent, while Spain’s
dropped 3.2 per cent.
The euro also fell to a two-year low against the dollar.
