[QODLink]
Europe
G7 to hold emergency eurozone talks
Ministers and central bankers to hold a special conference call, raising pressure on the Europeans to act.
Last Modified: 05 Jun 2012 11:02
German Chancellor Angela Merkel has been pressing reluctant eurozone partners to give up more fiscal sovereignty [EPA]

Finance chiefs of the Group of Seven leading industrialised powers are to hold emergency talks on the eurozone debt crisis, in a sign of heightened global alarm about strains in the 17-nation European currency area.

With Greece, Ireland and Portugal all under international bailout programmes, financial markets are anxious about the risks from a seething Spanish banking crisis and a June 17 Greek election that may lead to Athens leaving the eurozone.

Jim Flaherty, the Canadian finance minister, said ministers and central bankers of the United States, Canada, Japan, Britain, Germany, France and Italy would hold a special conference call on Tuesday, raising pressure on the Europeans to act.

"The real concern right now is Europe of course - the weakness in some of the banks in Europe, the fact they're undercapitalised, the fact the other European countries in the euro zone have not taken sufficient action yet to address those issues of undercapitalisation of banks and building an adequate firewall," Flaherty told reporters.

"Markets remain skeptical that the measures taken thus far are sufficient to secure the recovery in Europe and remove the risk that the crisis will deepen. So we obviously believe that more steps need to be taken," Jay Carney, the White House press secretary, told reporters.

Confidential teleconference

The disclosure of the normally confidential teleconference came as European Union paymaster Germany said it was up to Spain, the latest eurozone country in the markets' firing line, to decide if it needed financial assistance, after media reports that Berlin was pressing Madrid to request aid.

German Chancellor Angela Merkel and leaders of her centre-right coalition said in a statement: "All the instruments are available to guarantee the safety of banks in the euro zone."

They effectively ruled out Spanish calls to allow eurozone rescue funds to lend money directly to recapitalise Spanish banks, which are weighed down with bad property debts, without the government having to take a bailout programme.

Berlin is pressing reluctant eurozone partners, including close ally France, to agree to give up more fiscal sovereignty as part of a closer European fiscal union.

346

Source:
Agencies
Topics in this article
People
Country
City
Organisation
Featured on Al Jazeera
UNHCR says hundreds of people trapped in Yaloke town risk death if they are not evacuated to safety urgently.
'Justice for All' demonstrations swell across the US over the deaths of African Americans in police encounters.
Six former Guantanamo detainees are now free in Uruguay with some hailing the decision to grant them asylum.
Disproportionately high number of Aboriginal people in prison highlights inequality and marginalisation, critics say.
Featured
Long-standing dispute over Christian use of the word 'Allah' raises concerns about a very un-Merry Christmas.
The threat posed by ISIL has prompted thousands of young Kurds to join the PKK.
Baja California - with its own grim history of disappeared people - finds a voice in the fight against violence.
Russian feminist rockers fight system holding 700,000 - the world's largest per capita prison population after the US.
Weeks of growing protests against Muslims continue in Dresden with 15,000 hitting the streets last Monday.