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| Europe | |
| EU: Eurozone will not break up due to crisis | |
| 2009-04-04 | |
| The death of the eurozone has been grossly exaggerated despite growing strains in the bond markets, where governments plan to raise the trillions needed to pay for their economic recovery plans, a top EU official insisted on Monday. The spread between interest rates on debt issued by high-deficit eurozone countries compared to low-risk German government bonds widened last week to the highest levels since the eurozone was formed in 1999. The eurozone's detractors have long argued that the bloc would not be able to hold together if the divergence between the interest euro governments pay on their debt grows too large. EU Economic and Monetary Affairs Joaquin Almunia on Monday insisted that the move in the markets was not an ominous sign that the shared-currency bloc would break apart. "I am not worried at all by those who have announced for 10 years in a row that the euro area will split. Honestly, I don't think that this is a real hypothesis," he told reporters in Brussels. "It is normal that the market assess the risks. So the existence of a spread in euro area government bonds is logical because not all members of the euro area have the same fiscal position over the medium- to long-term," he said.
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| Posted by:Seafarious |
| #1 The continent of Europe is so wide, Mein Herr. |
| Posted by: g(r)omgoru 2009-04-04 05:22 |