The European Union (EU) has urged the G20 club of nations to agree when to scrap their economic support packages. The EU said a coordinated exit from stimulus measures would help restore confidence and reduce the risk that some countries would be disadvantaged.
Germany's budget savings policy risks destroying the European project and a collapse of the Euro cannot be ruled out, billionaire investor George Soros said in a newspaper interview.
Argentine president Cristina Fernandez de Kirchner said that Britain’s stance of declaring sovereignty over the Falklands/Malvinas sovereignty “non-negotiable” is a “mistake” dictated by “unilateral practices” that have created insecurity in the world.
World stock markets plunge Friday and the Euro hit an 18-month low against the dollar, on growing fears that the austerity packages unveiled across Europe could tip the continent back into recession and stifle global economic recovery.
Brazil is seriously considering retaliation against Argentina for new rules restricting food imports which allegedly compete directly with Argentine production. EU ambassadors in Buenos Aires made a similar presentation before the Argentine congress earlier this week.
Former Federal Reserve chairman and advisor of the Obama administration is concerned that the Euro area may break up after the Greek fiscal crisis that sparked an unprecedented bailout by the region’s members.
The International Monetary Fund has warned developed nations they face an “urgent” need to cut their budget deficits. Its warning comes as a slew of European countries face public unrest over their attempts to do just that.
Portugal has become the latest country to introduce austerity measures, after both Greece and Spain took similar steps to stabilize public finances in the face of massive debt.
While the Argentine government remained silent, European Union country ambassadors showed up at the Argentine Congress Thursday in order to protest against food import restrictions. The ambassadors, however, saved their criticisms and instead spoke in a conciliatory tone before the Lower House Foreign Affairs Committee, although they did not hide their “growing worry.”
The European Union and Mercosur will officially re-launch negotiations for a trade and cooperation agreement they have been discussing since 1999 in the coming Madrid summit, in spite of fears about their farm sectors from several European countries, said the EU representative for Paraguay and Uruguay.