Jose Manuel Barroso, the European Commision president has declared that he intends to put plans into motion to relieve the eurozone debt crisis despite the fact he believes the task to be more difficult than any other challenge this generation has faced. He made clear that he plans to push for the issuance of Eurobonds which would allow countries in the eurozone to take out loans jointly.
The Italian Finance Minister, Giulio Tremonti has already expressed his support for the notion of Eurobonds. Likewise George Soros, an investor, has backed the idea. However, the idea has repeatedly been opposed by Germany which has recently become financially stable again.
Later today, a conference call between German Chancellor Angela Merkel, Greek Prime Minister George Papandreou and the French President Nicolas Sarkozy will be held. The topic of discussion is presumed to be what course of action would be best to resolve the turmoil in the markets, which has been caused by worries over Greece defaulting on its debt.
Mr Barroso has confirmed that the Commision will soon be releasing the different options with regards to the introduction of Eurobonds. He explained that it will be possible to apply some of these options within the terms of the present treaty however, in some instances changes would have to be made to the treaty in order to accommodate them. He went on to say that although Eurobonds would greatly help the eurozone debt crisis towards a resolution, it alone would not suffice as a solution. In order to solve the debt problems he believes Europe needs to become more integrated as a whole. He explained that it is his belief that the European parliament, which has seventeen heads, slows down political processes too much for the markets which are impatient and mistrustful and that a more centralised system for decision making would be beneficial.
At the moment, Brazil, India, South Africa, China and Russia are due to discuss what financial support they can give to Europe when they meet as the World Banks and International Monetary Fund summit later this month.
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