Top Eurozone Leaders Vow Billions For Growth
The leaders of the eurozone's four top economies have agreed the European Union should boost growth by adopting a series of measures worth about 130bn euro (£104bn).
Italian Prime Minister Mario Monti, German Chancellor Angela Merkel, French President Francois Hollande and Spanish Prime Minister Mariano Rajoy held talks in Rome.
Mr Monti said the four leaders had agreed that kickstarting growth in the eurozone was key to restoring confidence.
He said: "The first objective we agree on is to relaunch growth, investments and to create jobs."
Mr Monti said the leaders agreed that, while much had been done to stem the euro crisis, there was still more work to do.
The Italian leader told reporters: "We want there to be a significant European growth package, that is worth about 1% of Gross Domestic Product (GDP), or 130bn euro.
"Growth can only have solid roots if there is fiscal discipline, but fiscal discipline can be maintained only if there is growth and job creation."
Ms Merkel hailed the move as "an important signal", adding: "The lesson of this crisis is more Europe, not less Europe."
The talks come ahead of a crucial full European Union summit in Brussels next week aimed at resolving the debt crisis.
Mr Monti said the message the four nations want to come out of the forthcoming meeting in Belgium on June 28 to 29 is that the euro will survive.
He said the meeting should "put at ease the financial markets expectations", adding "that the euro is here to stay and we all mean it".
"The great project which has been successful until now, the euro, is irreversible."
Mr Hollande added that the four leaders had agreed on the need for a financial transaction tax.
The French president also said there could be "no transfer of sovereignty without greater solidarity".
A transfer of sovereignty would be required for deeper fiscal integration in the eurozone, which Ms Merkel is pushing for, but France wants financial burden sharing to be a higher priority.
what do you think?
We will have another crash. Our leaders think they are putting water on the fire, but they are really pouring petrol on it from borrowing this money that they will never pay back.
It's phony, reported on telegraph, only 10 billion of the 130 billion is new money. The EU will tell any old lies to keep their snouts in the trough.
smoke and mirrors all one big confidence trick. its got nothing to do with money its all down to power, the power to control the people of the world
"Today Europe, tomorrow ze Vorld"..................
well well well so labour was right you need growth
The dogs in the street were right, too.
I think for 'growth' read 'profit'. Think profit and loss. You can grow a business artificially by borrowing to buy lots of stock and hiring new staff and it will increase sales figures..for a while. The gamble is how much to spend without going totally bust? The fiscal discipline equation. Spain/Greece have to borrow immeadiatley, they have no other choice.
Sorry, my spelling!! 'Immediately' must try harder!
Stephen, when Labours's Liam Byrne left a note on his desk when they lost the election, what did it say? I believe it was "there is no money left...sorry" Therefore where do you propose to get the money from to generate this growth without drastically reducing the public sector and making Britain more attractive for inverstors?
andrew this country is not skint. it was skint in 1945 and what did they do they built houses /NHS steel industry car industry / coal industry etc they rebuilt the country. and yes it was a labour government
Sorry Stephen but the Smutts government of S. Africa provided the money to do that
They provided the f*nds to get this country back on it`s feet after the war, a huge amount. No good relying on them again though, there has been a change of heart there.
If Greece is still struggling after receiving more than 200 billion, how is 130 billion going to create growth in Europe? also, what do they want in return? More cuts.
'TOP FOUR EUROZONE NATIONS'. Only one of them has a healthy economy, and that is Germany. France really isn't that much better off than Spain and Italy. Tells you everything about the Euro. Many saw this as doomed from the outset as one currency couldn't fit such divergent economies, giving them all the burden of the same interest and exchange rates. The rules were ignored to pull in as many countries as possible, and of course the weakest economies jumped at the chance.
More smoke & mirrors. None of this is new money but merely a rehash of old commitments which is exactly the same trick a certain G Brown used many times.
Please explain were u getting all this money from. They just seem to print money for there own convenience, all currencies in Europe will devalue. My advice to people is start investing in other currencies. Huge crash on the horizon
This will only work if the money is spent on infrastructure, and definitely not on expanding the public sector.
I would like a "spending" supporter to clearly draw a diagram showing exactly how borrowing more and spending more without generating additional exports will create long-term wealth. By circulating money within a country, no real growth will occur.
The most ridiculous aspect of all this is that the ?130Bn will be provided by those countries whose cost of borrowing is already high - they are being forced to lend money to Spain at 3% and borrow the money to lend at 7%+ thus increasing the risk of their requirement for a bailout themsleves! Who, in the EU, is actually trying to look at the bigger picture here.....no-one cos' they've all got their heads deeply buried in the sand!