EU summit on debt crisis delayed

Graham_Devon

Rinoa wrote: »

France and Germany may be the 'leaders' of the eurozone, but there are another 15 countries who are also members. They can't just come out and say 'this is what we're going to do'.

Other governments have to be consulted and all their parliaments have to agree. Hence the delay.

Ahhh, they obviously didn't know all this when they set the first date.

<rolls eyes>

Mrs_Bones

gagahouse wrote: »

Hmmm, time was running fast out but I think for now the market, albeit on thin volume, is believing they have realised the extent and urgency of the problem finally and are putting together a bank recapitalization package and orderly Greek default. That they have delayed it may be seen as a sign that they are putting a serious credible package together and need more time to ensure it gets through and is robust enough to be effective.

Or they could let us all down again and disappoint greatly by the G20 deadline. Till then, I think they've bought themselves just a little bit more time.

I think the markets are giving them yet one more chance but if they fluff this one up I expect mayhem.

It's not like we haven't been here before, remember July, all was on the brink then supposedly and they reach what they said was the final deal to solve the Greek problem and enlarge the funding pot. We are now in October and that agreement still hasn't been passed and set in stone by all 17 parts of the Eurozone.

In the meantime problems have grown and that deal is already out of date in many ways. We also find out the so called stress tests of the Europe banks is almost worthless.

Now the questions are

1) Do they actually know what they need to do or are they just guessing and hoping for the best?

2) If they can figure out what to do, will they be able to reach an agreement with everyone?

3) If they can reach an agreement, how many months will it take to bring into action and get it passed through all parliaments?

The markets won't wait for ever while they sort themselves out.

Graham_Devon

Well Slovakia is voting today....seen as crucial.

They are voting on whether to increase the bailout fund to $600bn, proposed in July.

However, that $600bn is seen now as no where near enough 3 months on, with markets suggesting it needs $2tn to fix the problems.

Merkel etc are saying they have new plans, and will release them in November.

worldtraveller

Herman Van who?

Mrs_Bones

Graham_Devon wrote: »

Well Slovakia is voting today....seen as crucial.

They are voting on whether to increase the bailout fund to $600bn, proposed in July.

However, that $600bn is seen now as no where near enough 3 months on, with markets suggesting it needs $2tn to fix the problems.

Merkel etc are saying they have new plans, and will release them in November.

All is not well in Slovakia Link

Slovakia's prime minister has raised the stakes ahead of a crucial vote on expanding Europe's bailout fund, by linking it to a confidence vote in her government.
Ahead of talks with members of her government, Iveta Radicova confirmed that a coalition partner has not accepted a compromise offer and added that the vote in parliament "will be linked to a confidence vote in this government."

but all is not lost

Ms Radicova suggested a second vote could take place if the first one fails to approve it, although it is not clear when that could happen.

If they don't give the right answer the first time they vote, as is normal with the EU, they will just be asked again .

Thrugelmir

Graham_Devon wrote: »

However, that $600bn is seen now as no where near enough 3 months on, with markets suggesting it needs $2tn to fix the problems.

To put the figures into perspective the latest figures for resolving the issues in the Irish banks entirely is £150 billion. There's a long long road ahead.