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EU's slowly but surely not fast enough

Wednesday, June 20, 2012 - 01:56

June 20 - Europe may have won support from world leaders for an ambitious but slow-moving overhaul of the euro zone but there's pressure from the financial markets for quicker solutions to the debt crisis which continues to threaten the world economy. Joel Flynn reports.

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(SOUNDBITE) (English) U.S. PRESIDENT BARACK OBAMA SAYING: "There are going to be a range of steps that they can take, none of them are going to be a silver bullet that solves this thing." No silver bullets from Europe then -- but do EU leaders have any ammunition at all? Europe won support from world leaders on Tuesday for an ambitious but slow-moving overhaul of the euro zone. But for markets that's seemingly nowhere near quick enough. And for traders like Oliver Roth from Close Brothers Seydler, the financial pressure is inching ever closer to boiling point. (SOUNDBITE) (English) OLIVER ROTH FROM CLOSE BROTHERS SEYDLER BANK AG, SAYING: "We have not seen any real results coming from the G20 and therefore, we are still between fear and hope: fear of the economic slowdown and hope for some support from the central banks." And markets are not the only ones frustrated by the slow moving responses. More protests by miners wives in Spain this week are the latest in the slew of unrest across the continent. French president Francois Hollande suggested on Tuesday that the European Stability Mechanism should be used to buy Spanish and Italian bonds. But Commerzbank's Peter Dixon says that talk of solutions simply isn't enough. (SOUNDBITE) (English) PETER DIXON, COMMERZBANK, SAYING: "We've heard all this before -- 'we have solutions to the problems' -- but I think until we actually start to see signs that European leaders are serious about tackling the problems that they face and are actually coming up with proper, concrete measures, I think we're all going to reserve judgement." As markets preoccupied themselves with news from the Fed, European eyes will soon turn to next week's EU Summit. With Greece finally swearing in Antonis Samaras as the new prime minister, debate was still raging on amending the bailout conditions. And with government debt prices in Italy and Spain still perilously high, there is much, much more to be done. Joel Flynn, Reuters

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EU's slowly but surely not fast enough

Wednesday, June 20, 2012 - 01:56