الرئيسية
LONDON/PARIS (Reuters) - A European summit deal to strengthen budget
discipline in the euro zone failed to restore financial market
confidence on Monday, forcing the European Central Bank to step in again
gingerly.
The euro fell, stocks slid and borrowing costs for Italy and Spain
rose as investors weighed the outcome of last week's summit that split
the European Union, with Britain blocking treaty change and forcing euro
zone countries to negotiate a fiscal accord outside the Union.
Friday's initial market rally quickly petered out due to legal
uncertainty surrounding the new pact and the absence of an unlimited
financial backstop for the single currency.
French President Nicolas Sarkozy said the legal basis of a new accord
to enforce debt and deficit rules in the 17-nation euro area with
quasi-automatic sanctions and intrusive powers to reject national
budgets would be worked out before Christmas.
discipline in the euro zone failed to restore financial market
confidence on Monday, forcing the European Central Bank to step in again
gingerly.
The euro fell, stocks slid and borrowing costs for Italy and Spain
rose as investors weighed the outcome of last week's summit that split
the European Union, with Britain blocking treaty change and forcing euro
zone countries to negotiate a fiscal accord outside the Union.
Friday's initial market rally quickly petered out due to legal
uncertainty surrounding the new pact and the absence of an unlimited
financial backstop for the single currency.
French President Nicolas Sarkozy said the legal basis of a new accord
to enforce debt and deficit rules in the 17-nation euro area with
quasi-automatic sanctions and intrusive powers to reject national
budgets would be worked out before Christmas.