G8 Summit-Euro Concerns - 21.5.2012

The G8 summit was held at the Camp David over the weekend were Obama was the international host, who said that governments must both boost growth and cut the debt as U.S recovery is threatened by the Euro sovereign debt crisis. At the G8 summit it was said that Greece must not exit the euro area, Greeks are preparing for elections again on the June 17 while earlier elections results increased the power for a party opposing the EU’s bailout plan. The two countries major European leaders, German and French meet this week to revise the plan for the Euro, French President Francois Hollande is willing to take growth measures and wants to balance that with Angela Merkel’s preference for spending cuts. Furthermore Spain’s deficit was revised upward and the 10 year Spanish yield bond climbed to 6.26 on Friday. German Finance Minister Wolfgang Schaeuble will discuss a plan for the euro with his French counterpart, Pierre Moscovici today before the European Leader’s summit on the 23rd of May.