OECD FINAL NEWS CONFERENCE ON EUROBONDS AND GREECE

>> YOUR LINK HERE: ___ http://youtube.com/watch?v=Qj4FAa_5hZk

(24 May 2012) Poland's finance minister Waldemar Pawlak said on Thursday that the eurobonds debate, one avenue for addressing the eurozone's debt crisis, is a very complicated problem . • The issue of eurobonds, debt issued jointly by countries in the eurozone, has been contentious as they would lower borrowing rates for countries with weaker finances, but would also raise them for stronger economies. • French President Francois Hollande is pushing for them, Italy's Prime Minister Mario Monti says they should be considered soon and Britain's deputy prime minister Nick Clegg has also expressed support. • Germany, which enjoys very low interest rates, has rejected the idea. • Berlin argues eurobonds would take pressure off heavily indebted countries to fix their finances and would raise borrowing costs for responsible ones like Germany. • It needs very good technical preparations for a eurobond concept because if Germany now have a financing on the market on the price two percent they have no energy to pay three, four and more percent for the bonds, Pawlak said. • Also attending the OECD news conference in Paris, was Ali Babacan, the Turkish Deputy Prime Minister for Financial Affairs. • He warned against allowing Greece to exit the eurozone. • If the eurozone lets one of the members to collapse it will open a door for a new era in which other countries could follow, so it's like opening a Pandora's Box, Babacan said. • Uncertainty over Greece's future in the eurozone is battering the country's financial markets, with investors unconvinced by European leaders' pledge to keep the country in the euro bloc. • Shares on the Athens Stock Exchange hit a new 22-year low on Thursday, closing down 4.5 percent at 502.52, despite gains made elsewhere in Europe. • EU leaders on Wednesday expressed backing for Greece's place in the eurozone but announced no new measures to avoid its exit from the17-country currency union. • Bailed-out Greece is fighting shaky finances and rising unemployment in a fifth year of recession. • It has failed to form a government after a May 6 general election and will hold a fresh poll on June 17. • • • Find out more about AP Archive: http://www.aparchive.com/HowWeWork • Twitter: / ap_archive • Facebook: / aparchives • Instagram: / apnews • • • You can license this story through AP Archive: http://www.aparchive.com/metadata/you...

#############################

New on site