EU chiefs back both growth, fiscal consolidation: Berlin

The leaders of Britain, Germany, France, Italy and senior EU officials agreed Thursday that both budget consolidation and growth are necessary to tackle the eurozone crisis, Berlin said.

During a video-conference "there was a high degree of agreement that fiscal consolidation and growth are not mutually exclusive but that both are needed," a spokesman for German chancellor Angela Merkel said in an email.

Merkel, new French President Francois Hollande, Italian Prime Minister Mario Monti, British Prime Minister David Cameron, EU president Herman Van Rompuy and European Commission head Jose Manuel Barroso took part, Cameron's office said.

The call came as fears over a possible disorderly Greek euro exit rocked Spain and Italy.

Germany, France, Italy and Britain are all members of the Group of Eight major industrialised economies, which meet Friday and Saturday for a summit at the Camp David presidential retreat near Washington.

Cameron's office said the leaders had discussed the G8 and the eurozone "including Greece, growth, and the importance of expanding trade relations between the US and EU".

The conversation was "constructive", it added in a statement, while the French presidency said there had been a "broad convergence of views".

Socialist Hollande has vowed to make economic growth a key component of eurozone austerity efforts to reduce debts since he won an election on May 6.

US Treasury Secretary Timothy Geithner this week welcomed an apparent pro-growth shift from the earlier European consensus prioritising tough austerity measures.

But a spokeswoman for Monti's Italian government said Thursday's call was "only a preparatory meeting between the G8 European leaders".

Van Rompuy said in a statement that the video-conference was to "exchange views and co-ordinate positions on the main issues" before the summit.

The leaders spoke after a caretaker government took office in Greece to organise its second election in six weeks after an inconclusive election on May 6, as fears over a possible disorderly euro exit rocked Spain and Italy.

In Spain, the government is desperately trying to shore up a crippled banking system amid concerns it may need outside help to do so.

In the video-conference, Cameron "emphasised the importance of Greece and the eurozone taking decisive action to ensure financial stability and prevent contagion," his office said.

Britain does not use the euro but Cameron warned Thursday that his government's plans to cut a record deficit and return to growth were being jeopardised by "head winds" from the euro crisis.

"The eurozone is at a crossroads. It either has to make up or it is looking at a potential break-up," he said in a speech to business leaders in the northwestern city of Manchester.

"Either Europe has a committed, stable, successful eurozone with an effective firewall, well capitalised and regulated banks, a system of fiscal burden sharing, and supportive monetary policy across the eurozone -- or we are in uncharted territory which carries huge risks for everybody."

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Philippines backs support for small enterprises at APEC meet

    MANILA, Philippines (AP) — The Philippines' top trade official on Saturday called for support for the integration of micro, small and medium enterprises in global trade, which he said would help reduce poverty and inequality in the Asia-Pacific region. …

  • US renews travel warning to Mindanao
    US renews travel warning to Mindanao

    The US State Department renewed its warning about the risks of travel to the Philippines, in particular to the Sulu archipelago, certain regions and cities of Mindanao and the southern Sulu Sea area. In an update on Wednesday of a travel warning it issued Nov. 20, 2014, the State Department said US citizens should continue to defer non-essential travel to the Sulu archipelago due to the high threat of kidnapping of international travelers and violence linked to insurgency and terrorism there. …

  • Phl gains support for APEC Action Agenda
    Phl gains support for APEC Action Agenda

    The Philippine initiative to put the interests of micro, small and medium enterprises (MSMEs) front and center in global and regional trade has made significant progress following the conclusion on Thursday of the 2nd APEC Senior Officials’ Meeting (SOM2) and Related Meetings in Boracay, Aklan. Called “The Boracay Action Agenda to Globalize MSMEs,” the Philippine proposal calls for a host of specific, concrete and practical interventions that APEC economies can implement to provide MSMEs wider …

  • Phl to join Bangkok meet on Rohingya crisis next week
    Phl to join Bangkok meet on Rohingya crisis next week

    The Philippines will join a 15-nation meeting in Bangkok, Thailand next week to address the migration crisis involving thousands of Rohingyas who escaped persecution in Myanmar and Bangladesh. Justice Secretary Leila de Lima bared this yesterday after meeting with United Nations High Commission for Refugees (UNHCR) representative to the Philippines Bernard Kerblat. In an interview, De Lima said the Philippine government has been invited to the meeting. …

  • Magnitude 4.2 quake jolts Sorsogon
    Magnitude 4.2 quake jolts Sorsogon

    LEGAZPI CITY—A magnitude 4.2 earthquake hit Prieto Diaz town in Sorsogon before dawn yesterday, the Philippine Institute of Volcanology and Seismology (Phivolcs) said. …

  • Drought-resistant rice breeds bared
    Drought-resistant rice breeds bared

    SCIENCE CITY OF MUÑOZ, Nueva Ecija – Amid the searing heat, the Philippine Rice Research Institute central experiment station here has identified nine rice breeds which have been proven to be drought-resistant and produce high yields in temperatures as high as 38°C based on a recent study. Thelma Padolina, lead researcher of the study titled “Screening of rice-induced mutants for heat and drought tolerance,” identified the breeding lines as the Ballatinaw lines, PSB Rc72H and Azucena lines. …

  • Phl, US assert rights, ignore China warning
    Phl, US assert rights, ignore China warning

    The United States military will continue air and sea patrols in international waters even after the Chinese navy repeatedly warned a US surveillance plane to leave the airspace over artificial islands China is creating in the disputed South China Sea. The Philippine government also declared it would continue activities in the region, calling on China to respect freedom of navigation and aviation. “Our position on the importance of letting freedom of navigation, freedom of aviation and …

  • MM shutdown eyed for quake drill; 6 schools warned
    MM shutdown eyed for quake drill; 6 schools warned

    Electricity and mobile phone services would be cut throughout Metro Manila, and all private and government offices and businesses, including shopping malls, would be closed. That would be the situation on July 16 between 3 and 8 p.m. to simulate the scenario of a 7.2 magnitude earthquake. The Philippine Institute of Volcanology and Seismology (Phivolcs) has warned that an earthquake of that magnitude could occur and kill at least 33,500 people and injure at least 113,600 others following a …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options