Tag Archives | Europe

China Vows To Help European Debt Crisis

2010 had Greece and Ireland receiving financial help from the Internatioanl Monetary Fund and Eurozone nations. 2011 has Spain, Germany and Britain finding help from Chinese investors as Vice Premier Li Keqiang began his European tour. Via The Jakarta Globe:

Chinese Vice Premier Li Keqiang backed Europe in its sovereign debt battle on Wednesday, starting a three-nation tour by promising to buy more Spanish government bonds.

Li, widely tipped to be the next premier, delivered a significant vote of confidence given China’s world record foreign reserves of 2.648 trillion dollars (2.0 trillion euros), much of it in euros.

On his visit to Spain, Germany and Britain he is supporting Europe’s recovery efforts and seeking to soothe global market fears of a debt quagmire spreading from Greece and Ireland to Portugal and even Spain.

[Continues at The Jakarta Globe]

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Is The Euro Dead?

euroSo sad to watch a dream die. The Telegraph‘s Jeff Randall declares that the united-Europe currency is close to death:

What was once deemed unthinkable is now, I believe, inevitable: withdrawal from the eurozone of one or more of its member countries. At the bottom end, Greece and Portugal are favourites to be forced out through weakness. At the top end, proposals are already being floated in the Frankfurt press for a new “hard currency” zone, led by Germany, Austria and the Benelux countries. Either way, rich and poor are heading in opposite directions.

When asked on Sky if, in five years’ time, the euro will have the same make-up as it does today, Jeremy Stretch, a currency analyst at Rabobank, the Dutch financial services giant, told me: “I think it’s pretty unlikely.” The euro was a boom-time construct. In the biggest bust for 80 years, it is falling apart.

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Ash Cloud Disrupts Travel for 2nd Day

Just when you thought air traffic was back to normal …  I’m headed for Europe this week, and I hope Vulcan will hold his wrath long enough for me to get across. CBC News Reports:

from C.G. Newhall at Wikimedia Commons

Air traffic to and from European destinations was disrupted by a cloud of volcanic ash from Iceland for a second consecutive day Sunday.

The cloud is lingering over northwestern Scotland and a finger stretches into the airspace over northwestern Spain and Portugal.

An isolated cloud is affecting southern France and northern Switzerland, while another hangs over southern Switzerland, northern Italy, southern Germany, the Czech Republic and Austria.

Roughly 1,000 fewer flights took place in European airspace on Sunday, a drop of four per cent from the usual number for this time of year.

Hundreds of flights were canceled Saturday as plumes of ash again blew toward western Europe.

Spain closed 19 airports, while dozens of flights were also canceled in Portugal.

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British Taxpayers Ordered to Bail Out Euro

Looks like it’s Europe’s turn for a round of taxpayer funded bailouts. The Telegraph reports:

Photo: Julien Jorge (CC)

Photo: Julien Jorge (CC)

All 27 EU finance ministers have been summoned to Brussels on Sunday to sign up to a “European stabilisation mechanism. Britain will be unable to veto this as it will be put through under the “qualified majority voting” system.

The deal, effectively to shore up the euro, was denounced as a “stitch-up” last night after it emerged Nicolas Sarkozy, the French President and Angela Merkel, the German Chancellor, had devised it behind closed doors and were attempting to push it through at a time when there is no clear government in Britain.

It was declared a “done deal” by the 16 euro zone leaders who met in the early hours of Saturday morning.

The decision was taken as David Cameron was locked in talks with the Liberal Democrats to try to form a government.

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