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Summit ends with stern warning for Greece

By Catholic Online (NEWS CONSORTIUM)
May 25th, 2012
Catholic Online (www.catholic.org)

A summit by the European Union ended with a stern warning to the nation of Greece - the country most responsible for the ongoing debt crisis - but leaders remained divided on the issue of Eurobonds. German Chancellor Angela Merkel feels that Eurobonds are ineffective, while the newly elected president of France, Francois Hollande said he wanted the bonds "written into the agenda."

LOS ANGELES, CA (Catholic Online) - Leaders told Greece that it will have to stick to its bailout terms if it wants to stay in the eurozone. "We want Greece to remain in the euro area while respecting its commitments," EU President Herman Van Rompuy said following discussions that dragged on for about five and a half hours.

At his first meeting of EU leaders, France's Francois Hollande made it clear that he intends to stand up to Berlin on European policy. Arriving for the summit in Brussels, he told reporters that Eurobonds would be up for discussion.

There remains a sharp divide between France and Germany on the subject of the bonds.

German Chancellor Angela Merkel stepped out of her limousine and said curtly that she did not think such bonds were a good idea or would help to boost growth.

Italian Prime Minister Mario Monti said that the majority of member states had supported Hollande's position.

Hollande said he wanted to see Eurobonds "written into the agenda" of the European Union going forward, saying he saw jointly pooled eurozone debt as a fundamental means through which to bolster the debt-stricken single euro currency.

Hollande suggested that this would allow governments to "finance investments," the French president said that pooling liabilities for past debts was "unacceptable" but that Eurobonds could help countries paying high borrowing costs, such as Spain and Italy.

EU President Van Rompuy said the subject of Eurobonds had been "briefly touched upon" by several leaders "in the framework of deepening the monetary and economic union.

"There was nobody asking for the immediate introduction of this," Rompuy stressed.

"We have to consider what the legal implications of all this are," Rompuy added, as leaders begin preparing ideas for a growth pact ahead of a full summit this coming June 28-29.

Van Rompuy said all EU leaders were "fully aware of the significant efforts already made by the Greek citizens" following "considerable solidarity" shown by eurozone partners. He also sought to ensure that EU grants and other means of providing aid would be mobilized.

"Continuing the vital reforms to restore debt sustainability, foster private investment and reinforce its institutions is the best guarantee for a more prosperous future in the euro area.

"We expect that after the elections, the new Greek government will make that choice."

© 2012, Catholic Online. Distributed by NEWS CONSORTIUM.

Article brought to you by: Catholic Online (www.catholic.org)