The President of the EU commission, Jose Manuel Barroso warned Germany to act now to save the euro. Addressing the European parliament, Mr Barroso, said that stronger integration is the solution, and euro-bonds were necessary to prevent the breakup of the single currency. The main opponent to the euro-bonds, German Chancellor Angela Merkel described the bonds as “exactly the wrong answer.” Merkel faces domestic pressure from her coalition parties, the Christian Democrat party and the Free Democrats who oppose the proposition of a common European debt union. EU finance officials warn Europe’s financial markets face disarray if corrective measures are not taken quickly.
Meanwhile American Treasury Secretary Timothy Geithner received a cool response towards his efforts to bring about a united and quick European response. In a meeting with Euro zone finance ministers, Geithner pushed for the 440 billion euros European Financial Stability Facility (EFSF) to tackle the spread of European financial crisis. PoliTact is monitoring the situation closely as it carries wide ranging security and economic implications for both Europe and US.