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As some parts of Europe burn from protests, Angela Merkel tried to reassure markets over fears about the16-nation eurozone.
“No one in Europe will be left alone, no one in Europe will be abandoned. Europe succeeds when it acts together and, I would add, Europe succeeds only when it acts together.”
But to the distress of many EU finance ministers, Merkel still rules out issuing new euro bonds and increasing the $750 million euro ($1 trillion usd) emergency fund.
Merkel said that “strict conditions” will be tied to aid for distressed countries under a planned permanent rescue system that leaders are set to discuss.
“The consequence is a stalemate that leaves us with a familiar sense of déjà vu,” said economist Ken Wattret. “Market tensions are likely to resurface, as governments remain very publicly divided on the appropriate way forward.”
Already, the euro and Spain seems to be affected by the negative vibe after Moody’s said it may cut Madrid's Aa1 credit rating. That country lost its top rating in September. Belgium received a debt warning on Tuesday when the euro declined vs the usd again.
