- CNTV English - CCTV News

European Commission President: Europe facing a "defining moment"

06-14-2012 08:14 BJT

Watch Video

Play Video

Faced with a deteriorating economic situation in Europe, the head of the European Union’s executive body has urged the region’s leaders to show the world that they are ready to move closer together to resolve their debt crisis.

Jose Manuel Barroso told the European Parliament that the continent is facing a "defining moment," and he said the only way to save the union was to make it stronger and tighter.

Days after seeking help for his country’s struggling banks - Spanish Prime Minister Mariano Rajoy has insisted they will have to pay back the loan.

Rajoy has come under fire for choosing to rescue banks while bringing in deep austerity measures.

He says he’ll discuss greater fiscal and banking integration when he meets the leaders of France, Germany and Italy next week.

That chimes in with comments European Commission President Jose Manuel Barroso made to the European Parliament.

Jose Manuel Barroso, European Commission President, said, "A deeper economic and monetary union requires deeper accountability and legitimacy. Making the technical proposals is ironically the easier part. But if the technical proposals are made without proper support all across the European Union, we risk a backlash."

Barroso called for euro zone countries to respond with more urgency to the two-and-a-half-year-old crisis.

Italy’s become the latest country to fall under the market spotlight.

Its high borrowing costs have sparked debate whether it’s next in line to ask for financial help.

Prime Minister Mario Monti told parliament his government is not about to ask for any kind of bailout.

But he is calling on European leaders to come up with a credible plan for growth by the end of the month.

Mario Monti, Italian Prime Minister, said, "If measures are instigated to allow growth, then the financial markets will see that the finances in Italy are sustainable, we will pay a lower spread, taxes will lower and businesses will have an easier time rather than be penalised with their investments and this will protect us from contagion."

Peter Westaway from Vanguard says while Italy’s banking sector isn’t a cause for concern, its debt is.

Peter Westaway, Chief Economist of Vanguard, said, "As soon as their interest rates start to creep up, it inevitably raises questions about their solvency. Italy, like Spain, has now started to put in place austerity measures and structural reforms which will hopefully get them on the right track, but without doubt the market is still worrying about Italy, for sure."

Time is of the essence for European leaders to act in this fast-moving crisis.

A slim majority of economists polled by Reuters say they believe Spain will soon follow Greece, Portugal and Ireland in seeking a sovereign bailout, on top of the rescue for its banks.


Editor:Zhang Jingya |Source: CNTV.CN

Hot Videos view more

The celebrations are still continuing as the victorious coach, Joachim Loew, has been honored for his achievement in his hometown of Freiburg.
Germany coach Loew honored in hometown of Freiburg

Chinese men´s national team continued its preparations for next year´s Asian Cup, as they managed a one-all draw against visitors Jordan during a football friendly in Harbin, the capital city of Northeast China´s Heilongjiang Province.
China held to 1-1 draw by Jordan

The defending world champs came into the contest with a perfect 6-and-oh record, but they would be in for a tough first half before opening things up in the second.
USA beat Slovenia 119-76 in quarter-finals

Hot Stories more

UK authorities believe killer of James Foley is a British national

Across the UK the hunt is on for James Foley’s killer, who authorities believe is a British national. As Richard Bestic reports from London, Prime Minister David Cameron cut short his summer break to lead his government’s response.

Israeli war jets renews Gaza strike as truce talks stalled

Three Palestinians were killed and 40 others wounded in the intensive Israeli war jets´ airstrikes on the Gaza city on Tuesday night, shortly before an end of a 24-hour ceasefire in the Gaza Strip,

Missouri police arrest dozens after violent night

As the protests in the town of Ferguson, Missouri turned violent with police facing ´heavy gunfire´ from some ´criminal elements´, cops fired tear gas, stun grenades and arrested 31 demonstrators on Monday night.

Picture in news more

More Video News

Choose TV Program