Wednesday, November 2, 2011

world business news 2nd of November

Germany warns Greece over rescue
the eruozone plan to save greece from bankruptcy is not up for renegotiation, Germany has warned, ahead of emergency talks with greece and france.
Greek PM George Papandreou is to meet France's Nicolas Sarkozy and Germany's Angela Merkel later on Thursday.
President Sarkozy had thought the priority would be presenting to the wider world a done deal for the Eurozone rescue and asking for active international support, particularly from China.
But instead, Mr Papandreou's move has left Mr Sarkozy, and German Chancellor Angela Merkel appalled by the uncertainty, and the damage already done, our correspondent says.
Mr Papandreou is expected to say that he had no choice: a referendum was vital to try to overcome resistance on the streets to deepening cuts - and a possible alternative of snap elections would risk Greece defaulting on its debt.
Furthermore, the Greek government faces a crucial confidence vote in parliament on Friday.
One MP from the governing Pasok party has resigned, cutting Mr Papandreou's parliamentary majority to two - and six other leading party members have called on him to resign.
The planned referendum threatens to unravel a deal reached at a EU summit last week aimed at resolving the euro debt crisis.
Leaders agreed on a 100bn-euro loan (£86bn; $140bn) to Athens and a 50% debt write-off.
But in return, Greece must make deep cuts in public spending, slashing pensions and wages and making thousands of civil servants redundant
Photo taken on July 20, 2011 at the Chancellery in Berlin showing German Chancellor Angela Merkel and French President Nicolas Sarkozy

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