The European Central Bank is imploring European leaders to make a choice as to their nations' commitment to the euro, reports Reuters. A definite direction and greater defense against bank runs might be the only things that will keep the European Union from dropping into an economic chasm - and pulling the rest of the planet down with it.
Severe issues
The euro currency has deflated to a two-year low against the U.S. dollar because of concerns that Greece may not survive and Spain's banking system could failure. Austrian and French bonds have 10-year yields at their low since the introduction of the euro, but European speculators are putting cash in nonetheless.
Spanish banks moved massive amounts of money abroad in March at a rate faster than has been recorded since record-keeping of such transactions started in 1990, notes the Associated Press. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to enormous losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
Not giving the help requested
International Monetary Fund Managing Director Christine Lagarde denied reports that the IMF is getting ready for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
At the same time, there is a June 17 Greek general election that will determine the nation's future on the subject of the euro zone. The SYRIZA leftists are not winning right now; the New Democracy party is winning, and that party is for bank bailouts. Ireland voters want the European Union to help out a bit, according to the New York Times, which is why it wants the government to approve a referendum.
Check out clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro quickly by European leaders. Not every person in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
Germany is well-known as a paymaster of the European Union and does not like the idea of a joint deposit guarantee for depositors that the ECB is pushing for. It is something German Chancellor Angela Merkel is not sure about. Germany has not been willing to put taxpayer dollars into the union in the past.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Financers concerned
It is not a good idea to stay cautious at this time, according to Draghi, although financiers are really worried due to the European economic crisis.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
Severe issues
The euro currency has deflated to a two-year low against the U.S. dollar because of concerns that Greece may not survive and Spain's banking system could failure. Austrian and French bonds have 10-year yields at their low since the introduction of the euro, but European speculators are putting cash in nonetheless.
Spanish banks moved massive amounts of money abroad in March at a rate faster than has been recorded since record-keeping of such transactions started in 1990, notes the Associated Press. The country's fourth-largest lender, Bankia, reportedly was nationalized in May due to enormous losses following a real estate crash. As much as $82 billion in net capital has been lost by Spanish banks in recent months.
Not giving the help requested
International Monetary Fund Managing Director Christine Lagarde denied reports that the IMF is getting ready for a Spanish bank bailout to keep Europe's economy from sinking further into the mire.
"There is no such plan. We have not received any request to that effect and we are not doing any work in relation to any financial support," said Lagarde.
At the same time, there is a June 17 Greek general election that will determine the nation's future on the subject of the euro zone. The SYRIZA leftists are not winning right now; the New Democracy party is winning, and that party is for bank bailouts. Ireland voters want the European Union to help out a bit, according to the New York Times, which is why it wants the government to approve a referendum.
Check out clarity
According to Mario Draghi, European Central Bank President, nations have to be put in order with the Euro quickly by European leaders. Not every person in the euro zone will get help and economic policy from the ECB.
"We will avoid bank runs from solvent banks. Depositors' money will be protected if we build this European guaranteed deposit fund. This will assure that depositors will be protected," said Draghi.
Germany is well-known as a paymaster of the European Union and does not like the idea of a joint deposit guarantee for depositors that the ECB is pushing for. It is something German Chancellor Angela Merkel is not sure about. Germany has not been willing to put taxpayer dollars into the union in the past.
"There are integration steps which will require treaty changes. We are not at that stage today but nevertheless there are no taboos," she said at a news conference.
Financers concerned
It is not a good idea to stay cautious at this time, according to Draghi, although financiers are really worried due to the European economic crisis.
"I urge all governments to keep this in mind, because it is better to err by too much in the very beginning rather than by too little," he said, citing the recent failures of Spain's Bankia and the French-Belgian bank Dexia.
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