Countries in the euro area have done, Friday, March 11 evening, a small step in their response to the debt crisis, adopting a "pact" to reform their economies, condition in Germany to help countries difficulty of monetary union. The Heads of State and Government of the eurozone, a summit meeting in Brussels, have agreed on a pact for the euro "in order to improve their competitiveness in order to avoid new crisis debt.
The device is intended to enhance the convergence of European economies by pushing governments to reform them, on a voluntary basis, however. It will be based on particular commitments to wage moderation in the public sector or mechanisms for limiting the public debt. It is however at this stage "as an agreement in principle", which will be finalized until all the measures currently under discussion within the monetary union to set up a crisis-have been approved, a said a European diplomat.
Leaders of euro zone countries were also to speak at their peak of their common response to the debt crisis. These funds increase their financial support for countries in difficulty to define the contours of a permanent mechanism called to succeed him in 2013, or decide on a possible easing of conditions on assistance to the Ireland and Greece.
In this context, EU leaders welcomed the new austerity measures announced Friday by Portugal, to "guarantee" to reduce its deficits. Of these, savings in the health sector, a further decline in social spending, or the imposition of a ceiling on spending for public enterprises. "I consider this an important step" that "is certainly very useful discussions," said German Chancellor Angela Merkel.
The Economic Affairs Commissioner Olli Rehn for his part said he "welcomed" and "supported" such measures, saying they would help "end the uncertainty" for Portugal. The situation has been tense in recent days on the bond markets for the countries of the "periphery" of the euro area, while the rating agency Moody's downgraded in quick notes from Greece and Spain .
The borrowing rate at ten years of the three most vulnerable countries - Greece, Ireland and Portugal - have reached new highs Friday. In this context, some countries, including Germany, have put pressure on these states to seek assurances from the direction of greater fiscal discipline.
The announcement of Lisbon in this direction could help to unlock the rest of the negotiations, while the Europeans are struggling to move forward especially on strengthening the support fund. They stumble on new instruments that the fund could be fitted, including the option of a direct purchase of the debt of distressed markets.
Germany opposed it. Faces important regional elections, the German chancellor is under pressure within his political majority to stand firm on these topics. The question of a possible decline in interest rates that must withstand Ireland and Greece in exchange for EU loan is not settled.
"We now need strong European (...) decisions to calm the markets," pleaded the Greek Prime Minister George Papandreou. This final decision is expected on 24 and 25 March, at the next summit of the European Union in Brussels. 
The device is intended to enhance the convergence of European economies by pushing governments to reform them, on a voluntary basis, however. It will be based on particular commitments to wage moderation in the public sector or mechanisms for limiting the public debt. It is however at this stage "as an agreement in principle", which will be finalized until all the measures currently under discussion within the monetary union to set up a crisis-have been approved, a said a European diplomat.
Leaders of euro zone countries were also to speak at their peak of their common response to the debt crisis. These funds increase their financial support for countries in difficulty to define the contours of a permanent mechanism called to succeed him in 2013, or decide on a possible easing of conditions on assistance to the Ireland and Greece.
In this context, EU leaders welcomed the new austerity measures announced Friday by Portugal, to "guarantee" to reduce its deficits. Of these, savings in the health sector, a further decline in social spending, or the imposition of a ceiling on spending for public enterprises. "I consider this an important step" that "is certainly very useful discussions," said German Chancellor Angela Merkel.
The Economic Affairs Commissioner Olli Rehn for his part said he "welcomed" and "supported" such measures, saying they would help "end the uncertainty" for Portugal. The situation has been tense in recent days on the bond markets for the countries of the "periphery" of the euro area, while the rating agency Moody's downgraded in quick notes from Greece and Spain .
The borrowing rate at ten years of the three most vulnerable countries - Greece, Ireland and Portugal - have reached new highs Friday. In this context, some countries, including Germany, have put pressure on these states to seek assurances from the direction of greater fiscal discipline.
The announcement of Lisbon in this direction could help to unlock the rest of the negotiations, while the Europeans are struggling to move forward especially on strengthening the support fund. They stumble on new instruments that the fund could be fitted, including the option of a direct purchase of the debt of distressed markets.
Germany opposed it. Faces important regional elections, the German chancellor is under pressure within his political majority to stand firm on these topics. The question of a possible decline in interest rates that must withstand Ireland and Greece in exchange for EU loan is not settled.
"We now need strong European (...) decisions to calm the markets," pleaded the Greek Prime Minister George Papandreou. This final decision is expected on 24 and 25 March, at the next summit of the European Union in Brussels.
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