French president Nicolas Sarkozy threatened to pull out of the euro if Germany did not agree to bail out crsisi-hit Greece. The revelation revived fears over the future of the single currency, sending the euro to an 19-month low against the dollar yesterday. Mr Sarkozy made his ultimatum at a meeting of EU leaders in Brussels last Friday to discuss the mounting eurozone debt crisis.
He apparently demanded ‘a compromise from everyone to support Greece, otherwise France will have to reconsider its position on the euro’. Sarkozy, who is of Greek ancestry on his mother’s side, added: ‘If at a time like this, with everything that is happening, Europe is not capable of a united response, then the euro makes no sense.’ News of the fissures in the EU’s apparently united front against the Greek crisis escalated the turmoil gripping financial markets. Some £44billion was wiped off the value of Britain’s biggest companies after the FTSE 100 fell 171 points or 3.1 per cent to 5,263. The euro fell to a 19-month low of $1.2365.
Investors were also spooked by news that Spain, which is one of the Europe’s most indebted nations, has fallen into deflation.
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