Greece Debt News : Update
Greece Issue has not settled yet
European leaders sent out conflicting signals at the weekend over aid to Greece, with Germany’s Angela Merkel urging Athens to solve its debt problems alone and Italy’s Silvio Berlusconi strongly backing EU support.The splitting of thoughts between leaders of Europe to help Greece has become a major trigger for the prices of Gold.
The Greece’s debt crisis, which kept lingering around the financial markets, helped push the Euro lower by 0.7% to 1.3513 on Friday.The 16-nation euro zone is divided over whether and how best to provide financial help to Greece, whose struggles to cope with soaring debt and deficits have plunged the currency bloc into the deepest crisis of its 11-year existence.
Chancellor Merkel, who faces a key state election in May, is keenly aware that the German electorate overwhelmingly opposes a bailout for Greece and has hardened her line against the EU making a concrete pledge of financial support.
An FT/Harris poll to be published in Monday’s Financial Times shows a third of Germans think Greece should be asked to leave the euro, while 40 percent believe Germany would be better off outside the currency bloc.The country’s prime minister, George Papandreou, made it clear the country would seek help from the International Monetary Fund if it doesn’t receive a financial aid mechanism from fellow European countries this week.But the European Union is dead set against involving the IMF, as calling in emergency help from an outside organization is seen an embarrassment.