Silvio Berlusconi – shutting one's eyes won't make the problems go away. Image AFP/Getty
Welcome back to the FT’s coverage of the eurozone crisis. Curated by John Aglionby, Tom Burgis and David Crouch on the news desk in London, with contributions from correspondents around the world. All times are GMT.
Greece really is expected to get a new prime minister today – 48 hours later than expected. Italy, well who knows what’s going to happen there as bond yields surge and the EU’s economic inspectors arrive … And policymakers and financiers are becoming increasingly concerned about the impact of the crisis on global liquidity levels.
18.53 That’s it for our live coverage today. We leave you with a round-up of where we stand at the end of another turbulent day in Europe – and some cold hard numbers (and letters) for your bedtime reading.
Welcome back to our continuing coverage of the eurozone crisis. In the early hours of the morning, eurozone leaders emerged from their summit in Brussels with a deal designed to stem the sovereign debt crisis. The markets seem pleased but big questions on the details remain. We’ll bring you reactions, news and commentary as we get it throughout the day.
All times are London time. By Tom Burgis on the news desk in London, with contributions from FT correspondents around the world.
18.34: It’s time to wrap up the live blog for today. But keep reading FT.com through the evening for:
18.13: Der Spiegel has a nice tale about whether or not Angela Merkel did in fact apologise to Silvio Berlusconi for appearing to smirk when asked publicly if she still had faith in his leadership.
18.07: Chatham House has just published a paper arguing that international debt bailout systems are ill-equipped to handle any further instability.
“As the problems in the eurozone deepen and threaten to spread globally, action is required to strengthen financial safety nets beyond what was agreed by EU Heads of State on 27 October 2011.”
Read the full report by Stephen Pickford, former managing director at the UK Treasury and former executive director at the IMF.
18.00: An evening update of the day’s developments:
- At the end of trading in Europe, the FTSE Eurofirst 300 finished 3.69 per cent higher for the day at 1,020. US stocks rose too, with GDP numbers that matched expectations adding to a positive reception for the EU’s moves
- Despite the ebullience in equities markets, concerns remained over soveriegn debt in the eurozone. Italian government bond yields first sank to 5.7 per cent, before rebounding to 5.9 per cent, near their euro-era highs
- Questions remain over the details of the eurozone deal, notably over the terms of the new bonds that will replace existing Greek debt as part of the agreed 50 per cent “haircut” (see 13.17), how banks will go about raising new capital and where the cash to fund the various eurozone plans will come from
- European officials are keen to involve China and other Bric nations in a fund to buy eurozone debt, though here too there are no firm plans yet
Welcome to our rolling coverage of the eurozone crisis. All times are London time. Curated by Esther Bintliff and John Aglionby on the world news desk in London, with contributions from FT correspondents around the world.
19.23: We’re winding up the rolling blog for today but thanks for reading, and do follow the rest of our coverage at ft.com/world. We’ll be back tomorrow to cover the crucial German parliamentary vote on expanding the EFSF (will Merkel preserve her absolute majority?) aswell as any other eurozone shenanigans…
19.21: Earlier we referred to some comments made by Angela Merkel in an interview with Greek TV late last night. Here’s the full story, from which:
Angela Merkel, German chancellor, has warned Greece that a €109bn rescue package, approved by the 17 eurozone leaders in July, may have to be reviewed if Athens fails to meet deficit reduction targets agreed with the European Union and International Monetary Fund.
When the European Union works well, the co-operation of three crucial partners is vital: France, Germany and the European Commission. It was the alliance of the Franco-German couple, allied to a powerful commission president in the shape of Jacques Delors, that led to the creation of a single European currency.
So it is a sign of the huge disarray at the heart of the European Union that the current president of the commission, José Manuel Barroso, is feuding openly with the German government. Even a few years ago, this would have been unthinkable. But now Barroso is calling German plans to re-open the Lisbon Treaty “naive”, criticising Germany for being too slow to act on the Greek bail-out, and pointedly reminding the Germans that the euro was all their idea in the first place. German ministers, meanwhile, have responded with even more aggressive language – openly calling Barroso’s charges “absurd”. Privately, top officials in Berlin have been cruelly dismissive of the commission president for months, accusing him of grovelling to secure his re-appointment. Read more