Thursday, April 17, 2014
YOLO COUNTY NEWS
99 CENTS

Spain calls for help to lower borrowing rates

PARIS (AP) — Spain can’t continue much longer with its current high borrowing rates, the prime minister warned Wednesday as he urged a joint European response to keep the region’s debt problems from getting worse.

Mariano Rajoy and newly elected French President Francois Hollande, heading later in the evening to meet other European Union leaders, also stressed their commitment to keeping Greece in the euro despite its political uncertainty.

“Europe has to come up with an answer. It is a must, because we cannot go on like this for a long time, with large differences when it comes to financing ourselves. And it is because of these differences that the policies that we Europeans believe in, such as controlling government spending and reforms to encourage growth, ultimately have no effect,” Rajoy said in Paris alongside Hollande.

“So I am going to talk about liquidity, financing and debt sustainability. For me it is the most important thing today. There are a lot of important things but this is the most urgent one,” he said.

Rajoy suggested the European Central Bank resume some of its emergency measures, such as buying the bonds of weak countries, which has the impact of lowering countries’ borrowing rates.

Hollande said the ECB’s role would be discussed by European leaders, and said he will formally propose so-called eurobonds — debt issued jointly by eurozone countries — at Wednesday’s summit.

Such bonds would aim at bringing down borrowing rates by distributing the risk of some countries debt. Germany is opposed because it would raise its own borrowing rates and reduce the pressure on heavily indebted governments to heal their finances. Rajoy said he doesn’t think the 27 EU leaders meeting in Brussels will resolve the eurobond dispute Wednesday.

Hollande insisted he would stick by his push for a Europe-wide growth pact by the end of June. He won election earlier this month in part on his attacks on austerity measures championed by his conservative predecessor Nicolas Sarkozy and Germany’s Angela Merkel. His political plans remain uncertain, however, depending on whether his fellow Socialists take control of parliament in legislative elections next month.

Pressure is rising on European leaders to agree to new growth measures to complement the budget cuts. Both the International Monetary Fund and the Organization for Economic Cooperation and Development have said the pace of austerity measures should be slowed in some countries to lower the risk of a severe recession.

The OECD, which monitors economic trends in developed economies, openly called for the use of eurobonds and more emergency measures from the European Central Bank to keep the slowdown from dragging down the global economy.

Alongside economic growth, Greece’s electoral turmoil and dismal finances will be high on leaders’ minds in Brussels. Hollande said he would “do everything to convince the Greeks to stay in the euro.”

Rajoy agreed there was no doubt the country should remain in the currency union: “What I want is that Greece stays in the eurozone, that’s what’s best for Greece and best for Europe.”

Borrowing costs are up for the most indebted governments. There is an increasing number of reports of worried savers and investors pulling funds out of banks that are seen as weak. Meanwhile, unemployment is soaring as recession grips nearly half the eurozone countries.

————

By Thomas Adamson. Sylvie Corbet in Paris and Daniel Woolls in Madrid contributed to this report.

The Associated Press

LEAVE A COMMENT

Discussion | No comments

The Davis Enterprise does not necessarily condone the comments here, nor does it review every post. Read our full policy

.

News

Davis wins USA Today Best Cycling Town honor

By Dave Ryan | From Page: A1

 
Benefit set to help local bike legend

By Adrian Glass-Moore | From Page: A1 | Gallery

 
Jury deliberates murder, elder-abuse charges

By Lauren Keene | From Page: A1

 
State’s health care sign-ups beat projections

By The Associated Press | From Page: A2, 1 Comment

For the record

By Enterprise staff | From Page: A2

 
California residents divided on drought solution

By San Francisco Chronicle | From Page: A2

 
For the record

By Dave Ryan | From Page: A2

Three killed in attack on Ukrainian base

By The Associated Press | From Page: A2 | Gallery

 
Downtown post office set to reopen

By Thomas Oide | From Page: B3

Run or walk to prevent child abuse in Yolo County

By Enterprise staff | From Page: B3 | Gallery

 
Nominations sought for charity paint giveaway

By Enterprise staff | From Page: B3

 
Scholar will discuss human trafficking in Friday talk

By Enterprise staff | From Page: A3

Per Capita Davis: Now, for some good news

By John Mott-Smith | From Page: A4

 
Birch Lane hosts 50th anniversary party

By Enterprise staff | From Page: A4

Hannah Stein reads poetry at gallery

By Enterprise staff | From Page: A4

 
Davis Food Co-op to offer free bags on Earth Day

By Enterprise staff | From Page: A4

Get in the picture with school board candidate

By Special to The Enterprise | From Page: A4

 
KDVS hosts on-air fundraiser April 21-27

By Enterprise staff | From Page: A4

Tickets on sale for Pence Garden Tour

By Enterprise staff | From Page: A4

 
Fundraiser planned for Allen’s campaign

By Enterprise staff | From Page: A4, 2 Comments

Food Co-op board plans open house

By Enterprise staff | From Page: A4

 
Davis Downtown hosts candidate forum

By Dave Ryan | From Page: A4

Learn more about Google Glass at talk

By Enterprise staff | From Page: A4

 
Barbecue celebrates winter shelter program

By Special to The Enterprise | From Page: A5

Sign of things to come

By Fred Gladdis | From Page: A8

 
Davis Soroptimists celebrate 60 years

By Special to The Enterprise | From Page: A8

.

Forum

Fancy meeting you here …

By Special to The Enterprise | From Page: B5

 
Don’t miss a Trokanski dance

By Letters to the Editor | From Page: A6

Frank Bruni: The oldest hatred, forever young

By New York Times News Service | From Page: A6, 4 Comments

 
Expert: Free parking is a myth

By Special to The Enterprise | From Page: A6, 1 Comment

Have they really learned?

By Letters to the Editor | From Page: A6

 
A great community effort

By Letters to the Editor | From Page: A6, 2 Comments

Public Health Heroes honored

By Letters to the Editor | From Page: A6

 
Tom Meyer cartoon

By Debbie Davis | From Page: A6

.

Sports

Huge inning propels Pleasant Grove past DHS

By Enterprise staff | From Page: B1

 
Giants edge Dodgers

By The Associated Press | From Page: B1 | Gallery

Foster steps down as Lady Blue Devil basketball coach

By Bruce Gallaudet | From Page: B1 | Gallery

 
River Cats’ streak reaches six wins

By Enterprise staff | From Page: B1

Landry evolves into UCD women’s lacrosse leader

By Bruce Gallaudet | From Page: B1 | Gallery

 
Youth roundup: Martinez, Chan come up big at gymnastics regional

By Enterprise staff | From Page: B2 | Gallery

Kings drop season finale to Suns

By The Associated Press | From Page: B2

 
Angels get past A’s in extras

By The Associated Press | From Page: B8 | Gallery

.

Features

.

Arts

Wineaux: Good deals off the beaten path

By Susan Leonardi | From Page: A7

 
Rockabilly phenom to play at The Palms

By Enterprise staff | From Page: A7

HellaCappella showcases a cappella singing

By Enterprise staff | From Page: A7

 
‘One’ singular sensation to open at DMTC

By Enterprise staff | From Page: A7

25th annual state clay competition exhibit at The Artery

By Enterprise staff | From Page: A7

 
.

Business

.

Obituaries

Tapan Munroe

By Special to The Enterprise | From Page: A4

 
.

Comics

Comics: Thursday, April 17, 2014

By Creator | From Page: B6