A new German political party opposed to the single European currency is holding its first national conference.
Alternative for Germany wants the euro abolished, with states returning to their original currencies.
Opinion polls suggest the party is unlikely to win widespread support in September’s general elections.
But analysts say it could skim enough votes from Chancellor Angela Merkel’s Christian Democrats to make it harder for her to retain power.
Angela Merkel recoils from Greek showdown on Spain contagion fears – Telegraph.
The German Chancellor Angela Merkel has been visiting Athens today, for the first time in three years. She comes at a time when Greece is looking for the next €31.5bn tranche of aid. Without the aid Greece will run out of money by the end of November. Recent figures show Greece has been in recession for 5 years, it’s economy has shrunk by 22%, and youth unemployment is currently at 55%.
Mrs Merkel was met with angry protestors and required 6,000 police officers to protect her. Greeks, and the Greek media, greeted her with Nazi insults.
Both the EU and IMF have been insistent that Greece steps up austerity measures in order to receive the money. However, Mrs Merkel came to Athens with a softer tone than Athens has previously heard.
There has been mounting pressure on Germany not to allow Greece to default, thus forcing her out of the eurozone. If Greece were to exit, then Spain would likely follow, and the euro would break up. Also tougher austerity measures could result in the collapse of the pro-Europe ruling coalition. If the Greek government collapses it would likely be replaced by either a far-right or far-left alternative. That could destabilise the entire region, affecting the Balkan region and Turkey, something no one wants to see.
It is likely Greece will receive the next instalment of money, however the €31.5bn will only keep Greece afloat a few more months. And as time passes both Spain and Portugal are edging closer to requiring more bailouts.
EU leaders seek to avert euro collapse at key summit – EUROZONE – FRANCE 24.
As the European Union summit begins, the ongoing crisis will dominate talks. Ahead of the summit Angela Merkel has already ruled out the introduction of Eurobonds, saying that the appropriate measures are not in place for such a move.
Europe appears more divided than ever, with Spain and Italy calling for EU help to bring down their high borrowing costs; and Angela Merkel dismissing their calls for assistance.
The German’s are worried at French calls for debt polling, instead of focusing of debt reduction. Angela Merkel said, “I fear that at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures,”
As the crisis in Greece continues, EU leaders and officials from the IMF, are publicly talking about the possibility of Greece leaving the Euro.
Before now, this was said to be unthinkable.
But as the crisis deepens an exit is looking more likely despite the high financial costs.
Chancellor Angela Merkel of Germany has called on the Greece to hold a referendum on the Euro.
Despite the Greek people voting against EU-IMF austerity in the elections, polls still show about 70% of the country want to remain in the Euro.
However, Germany have made it clear, to remain in the Euro, they have to stick to their austerity obligations.
Also in Europe, Ireland’s banks are still struggling and it’s thought Ireland will soon need a second bail-out.
After socialist candidate Francois Hollande won the French Presidential elections, markets fell across the world.
Hollande is France’s first socialist President in 17 years. He won on the promise of a move away from austerity, more government spending, and high taxes on the rich.
Businesses in France are concerned, with many wealthy French planning to move to London.
Hollande’s victory could also bring about division at the heart of Europe, as German Chancellor Angela Merkel has repeated calls that austerity must be stuck to. However, the southern European nations of Italy, Spain and Greece hope that Hollande will side with them in a move away from austerity.