BRUSSELS, March 13 (Reuters) – Soaring unemployment and
biting austerity will top the agenda at a summit of EU leaders
starting on Thursday, with the social consequences of the
region’s debt crisis now seen as the greatest threat to the
survival of the single currency.
The president of the European Parliament, the EU’s only
directly elected body, warned this week that a generation risked
losing faith in Europe unless rapid steps are taken to tackle
joblessness and recession.
BRUSSELS/AMSTERDAM (Reuters) – The euro zone’s 17 finance ministers will meet on Friday in Brussels after an EU leaders’ summit to discuss a financial bailout of Cyprus, officials said on Wednesday, signaling growing momentum for a deal.
The meeting, which follows a mission by the troika of international lenders to Cyprus, raises expectations that the euro zone is close to sealing a package of aid that the Mediterranean island asked for last June.
BRUSSELS (Reuters) – Hungary’s decision to change its constitution and limit the power of its top court is a forthright challenge to the European Union, and the uncomfortable truth in Brussels is that little can be done to rein Budapest in quickly.
The Hungarian parliament, dominated by supporters of Prime Minister Viktor Orban, has voted overwhelmingly for a set of constitutional amendments that opponents, including the EU, the U.S. government and human rights groups, fear will undermine the country’s 24-year-old democracy.
BRUSSELS (Reuters) – Europe has spent hundreds of billions of euros rescuing its banks but may have lost an entire generation of young people in the process, the president of the European Parliament said.
Since the region’s debt crisis erupted in Greece in late 2009, the European Union has created complex rescue mechanisms to prop up distressed countries and their shaky banking sectors, setting aside a total of 700 billion euros.
BRUSSELS (Reuters) – The worst of Europe’s sovereign debt crisis may be over in terms of financial turmoil but the region now faces a social crisis that has potential to tear the European Union and its single currency project apart.
Political and economic analysts speaking at the Reuters Euro Zone Summit said the decision last September by the European Central Bank to buy government bonds in unlimited amounts set a floor under one part of the crisis, but did nothing to prevent worsening social strife.
BRUSSELS (Reuters) – European Commission President Jose Manuel Barroso appealed to EU leaders not to give in to populism on Tuesday after Italian voters roundly rejected the austerity policies pursued by outgoing prime minister Mario Monti.
Speaking at a Reuters summit on the future of the euro zone, Barroso said efforts to revive Europe’s economy would take time and required determination. The fact Italian voters had turned Monti out of office did not mean his policies, or those advocated by the European Union, were wrong.
BRUSSELS, Feb 26 (Reuters) – Italy’s fractured election
result may be a wake-up call to European politicians who have
slackened their reforms and in any case market pressure will
return to force euro zone integration, a prominent EU lawmaker
The Italian stock market fell and the country’s borrowing
costs rose on Tuesday as investors took fright at a political
stalemate after elections that saw a protest party lead the poll
and left no group with a clear majority in parliament.
BRUSSELS/NICOSIA, Feb 25 (Reuters) – European policymakers
are split over how to handle a bailout of Cyprus, with Germany
and some other countries pushing for bank depositors to bear
part of the cost and many other member states worried such a
move will cause a bank run.
Euro zone officials say momentum has built in recent days
behind the idea of “bailing-in” Cypriot bank shareholders and
depositors, although the specifics of how such an operation
would be carried out have not been pinned down.
BRUSSELS (Reuters) – European Union leaders agreed the framework of a new long-term budget on Friday after 15 hours of through-the-night negotiation, laying the ground for 960 billion euros of spending on agriculture, aid and scientific research in the years ahead.
The agreement, which EU officials said would only be finalized later on Friday, strikes a tight balance between the demands of northern European countries such as Britain and the Netherlands that wanted a belt-tightening budget, and countries in the south and east such as France and Poland that wanted spending on farming subsidies and much-needed infrastructure.
BRUSSELS (Reuters) – European Union leaders agreed the framework for a new long-term budget on Friday after 15 hours of intense negotiations, laying the ground for 960 billion euros of spending on everything from agriculture to scientific research in the years ahead.
The agreement, which EU officials said would only be finalised later on Friday, strikes a balance between the demands of northern European countries such as Britain and the Netherlands that wanted a belt-tightening EU budget, and countries in the south and east that wanted sustained spending on farming subsidies and much-needed infrastructure.