Saturday, September 17, 2011

"Europe postpones aid to Greece and rejects the "recipe" of U.S. Attorney

The Obama treasury secretary, Timothy Geithner, suggested more expansionary measures to the EU. European colleagues told him "no thanks". And he refused to Athens a "lifeline" immediately.

The European Union yesterday gave an economic and financial double message: to Greece he said he did not yet deliver the coveted last part of the rescue fund of 8,000 million euros. And, out, told the U.S. that their recipes are unwelcome shock, and will continue on the path of structural reforms and fiscal austerity. Washington participated in the summit of finance ministers of the eurozone held in Poland with his treasury secretary, Timothy Geithner, something quite unusual. In fact it was the first time that the Treasury chief is attending a summit of European colleagues.

The 17 ministers of the eurozone meeting in Wroclaw, Poland, stone guest stopped Geithner, who urged the EU to increase the volume of European Financial Stability Fund (EFSF), now equipped with 440,000 million euros, and is the tool to address acute crises, such as Greece, Ireland and Portugal.

Proposal rejected. Geithner The proposed policy involves following expansionary monetary and fiscal policies, applying United States. The model in mind Geithner is the TARP program, created in America during the 2008 crisis to stimulate consumer credit and business, guaranteeing the loans to banks. But this mechanism is not transferred to the European EFSF. "There is debate in the EU the increase or expansion of the European mechanism for financial stability with a non-member euro area," said the chairman of the Eurogroup, Luxembourg's Jean-Claude Juncker. He added that "European governments are no leeway in the euro zone that would allow new stimulus" tax. Europe is on his way to prioritize "fiscal consolidation and structural reforms," ​​agreed Commissioner Juncker and European Commission Economy, Olli Rehn.

Geithner stressed to his fellow European leaders that there calls for an increase in funding for EFSF, but put on the table should be sufficient to guarantee that a hypothetical redemption of Spain or Italy. Europe, Geithner also said, should "stop talking" about the possibility of a default of Greece and accelerate the solution of the problem. The Austrian minister, Maria Fekter, criticized even the presence of Geithner at the meeting: "I do not think it is justified that someone is here to teach us anything. If you look at the macroeconomic data, Europe is better than them," he snapped. Germanic colleague, Wolfgang Schauble, was also contrary to the accusations of Geithner, even without resorting to such harsh language.

Greece, in limbo. Meanwhile, in the front properly European, Greece received a severe correction from the ministers of the eurozone and the rest of the EU, and must wait for mid-October this year to receive the last 8 billion euros in the first bailout package, and to approve a second fund for help.

..." link


Anonymous said...

I.H.T. Op-Ed Contributor

Ten Reasons for a European 'Yes'




Published: September 16, 2011

It is not often that Europe has the chance to play a pivotal role on the world stage. (cont'd)

* * *

Thanks to Adamantine for the link.

RomaLynn said...

That is almost hilarious Geithner giving EU advice on anything. Strange world.