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G7, others to discuss eurozone crisis
By Staff Reporter
AFP American Edition
Jun 04, 2012 15:07 EDT
Finance ministers of the Group of Seven and other economic powers will talk by phone on Tuesday on the eurozone crisis and the weak European banks, Canadian Finance Minister Jim Flaherty said Monday.
"Those discussions also take place with some of the non-European members of the G20 who are concerned... with the potential consequences of a crisis in the eurozone," Flaherty said in a Toronto press conference.
"The real concern right now is Europe, the weakness in some of the banks in Europe, the fact they're undercapitalized, the fact the other European countries in the eurozone have not taken sufficient action yet to address those issues of undercapitalization of the banks and building an adequate firewall," he said.
"This is a continuing concern."
Concern has mounted that some of Spain's banks could collapse without direct aid from Europe.
But Germany has resisted allowing funds from the region's financial firewall, the European Stability Mechanism, to be lent directly to banks rather than via governments as required currently.
Markets meanwhile have signaled disfavor for Madrid itself taking on any more debt.
The G7 includes Canada, France, the United States, Japan, Germany, Britain and Italy.
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By Staff Reporter
AFP American Edition
Jun 04, 2012 15:07 EDT
Finance ministers of the Group of Seven and other economic powers will talk by phone on Tuesday on the eurozone crisis and the weak European banks, Canadian Finance Minister Jim Flaherty said Monday.
"Those discussions also take place with some of the non-European members of the G20 who are concerned... with the potential consequences of a crisis in the eurozone," Flaherty said in a Toronto press conference.
"The real concern right now is Europe, the weakness in some of the banks in Europe, the fact they're undercapitalized, the fact the other European countries in the eurozone have not taken sufficient action yet to address those issues of undercapitalization of the banks and building an adequate firewall," he said.
"This is a continuing concern."
Concern has mounted that some of Spain's banks could collapse without direct aid from Europe.
But Germany has resisted allowing funds from the region's financial firewall, the European Stability Mechanism, to be lent directly to banks rather than via governments as required currently.
Markets meanwhile have signaled disfavor for Madrid itself taking on any more debt.
The G7 includes Canada, France, the United States, Japan, Germany, Britain and Italy.
[You must be registered and logged in to see this link.]
