Europe warns Greece to accept debt deal or quit euro by Hui Min Neo | November 03, 2011 French

President Nicolas Sarkozy and German Chancellor Angela Merkel warned on Wednesday that Greece must quickly abide by the terms of a bail-out deal if it wants to stay in the euro. After talks with Greece's beleaguered Prime Minister George Papandreou, the visibly angry eurozone leaders insisted that if he wants to hold a referendum then he must do so as soon as possible to clear up all uncertainty. And they warned that if Greece does not agree to meet the terms of the debt deal hammered out last week by eurozone leaders, it will not get "one more cent" from the next planned installment of EU and IMF bail-out. Without this eight-billion euro transfer, observers warn, Greece would face problems paying government salaries and a messy debt default within weeks. Papandreou agreed Greece's future in the euro was at stake and said a vote could be called on December 4. He did not reveal the wording of the referendum question, but said he was sure Greek voters wanted to stay in the euro. The Greek leader said after meeting the European leaders "that we could move the referendum as soon as possible, organise it as soon as possible, and we believe that we can have a referendum on the 4th of December." He insisted that it was the "democratic right" of the Greeks to vote on the bailout plan -- which foresees more tight austerity measures -- but added: "I believe that the Greek people want to be in the eurozone." He conceded however that the popular vote put the country's euro membership at stake: "This is a question of whether we want to remain in the eurozone. That's very clear." Merkel and Sarkozy both said they hoped that Greece would stay on board, but warned that Athens would not get a free ride. "The Greeks have to decide whether to continue the adventure with us or not," warned Sarkozy. "We hope to continue with the Greeks, but there are rules that have to be respected." "The Europeans and the IMF can't release the sixth tranche of loans to Greece until Greece endorses the package of October 27," Sarkozy said, calling for the referendum "if one is needed" to be carried out swiftly. The European leaders also pledged to stand by the euro, even if the Greeks were to vote against it. "If the Greeks say they do not want to stay in the euro, we will accept it, but we will not abandon the euro," Merkel said. "We do not want to let the euro be destroyed, we do not want to let Europe be destroyed," stressed Sarkozy. "The Greek people are free to choose, but we are accountable for the stability of the euro zone." On Monday, Papandreou shocked Europe by saying he would put the terms of the bail-out deal to a popular vote, sending panic through markets which thought the rescue plan a done deal. That news overshadowed Thursday's G20 summit, which Sarkozy had hoped could be a forum to relaunch a drive to reform global finance. It also increased the threat posed to Italy by its own debt mountain -- forcing the costs of Italian government borrowing higher. International Monetary Fund chief Christine Lagarde said that the IMF would only decide on the next tranche of Greek aid after the referendum. "As soon as the referendum is completed, and all uncertainty removed, I will make a recommendation to the IMF Executive Board regarding the sixth tranche of our loan to support Greece's economic program," she said in a statement. For months the eurozone has insisted that Greece will not leave the eurozone, and the summit marked the first time the possibility of a country abandoning the euro had been so explicitly raised. Despite hostility in Greece towards the tough rescue conditions, a recent poll indicated that most Greeks favour staying in the eurozone. G20 members meeting from Thursday in Cannes are expected to heap furthepressure on Europe. The White House said it wanted "unanimity of purpose" to emerge from the G20. White House spokesman Jay Carney said the situation would be a key subject. Meanwhile, China's President Hu Jintao told the French daily Le Figaro: "China sincerely wants stability for the eurozone and the euro," but without confirming that China would participate in the EU rescue fund.

Following the talks Papandreou set off back to Athens to face a confidence vote in parliament. Sarkozy will host the leaders of the world's most powerful economies at a two-day summit in Cannes starting Thursday.

French president states Well never abandon the euro! - 31 Jan 2011

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French president states Well never abandon the euro! Addressing the World Economic Forum in Davos, Switzerland regarding the future of the euro in the wake of financial crises experienced by many European Union member states, President Nicolas Sarkozy assured that the Euro currency and the European Union are lasting foundations for European peace. The French leader, who also holds the 2011 presidency of both the G-8 and the G20 international forums, called on the world's nations to rethink their old ways of working. He stated, If Europe has become the world's most stable, most peaceful continent, it is because we, our predecessors built the European Union. To imagine that we might pull out of that is to ignore the fact that we now have one wish, and that is lasting peace. We respectfully laud Your Excellencys commitment to preserving the stability of the currency and organization that you and many others have worked so diligently to achieve. Wishing all European Union nations flourishing prosperity and continued harmonious relations with each other and the world. (CNN) -- French President Nicolas Sarkozy insists Europe will never give up on the euro, despite widespread fears for the currency's future. Economists have voiced concerns that ongoing debt crises in Greece, Ireland, Spain and Portugal could spell the end of the single European currency. But in an address to the World Economic Forum in Davos on Thursday, Sarkozy made clear he believes the euro will survive despite its current difficulties. "We will never abandon the Euro. Never! "Euro spells Europe, the euro is Europe. Europe has meant 60 years of peace on our continent. We will never abandon that." Sarkozy said the euro was central to European unity. "If Europe has become the world's most stable, most peaceful continent, it is because we, our predecessors built the European Union. "To imagine that we might pull out of that is to ignore the fact that as people who have been at each other's throats for centuries, we now have one wish, and that is lasting peace." The French President said the euro's member nations could not even consider allowing the currency to falter. "The consequences of the euro failing would be so cataclysmic, we can't even imagine them, we can't even play with this idea." And he had a warning for currency speculators and those apparently keen to see the euro's troubles continue. "For those who wish to wager against the euro: Be careful how you invest because we are determined." Sarkozy also took on the U.S., telling his "friends across the Atlantic", that despite the U.S. dollar's status as the world's dominant currency, the country did not have the right to make all the rules. "Nobody wants to weaken the dollar -- the world needs the dollar. The dollar is there, it will continue to be the world's dominant currency. "But dominant currency doesn't mean the only currency." He said it was only natural that each nation would act in the best interests of their own currency, because it was not simply an economic issue, but a political one. Sarkozy, who holds the presidency of both the G-8 and the G-20 in 2011, called on the world's nations to rethink their old ways of working. "We entered into the 21st century 11 years ago already, and we are still functioning according to the rules of the twentieth." He said it was "madness" that Africa, South America and India did not hold a permanent seat on the U.N. Security Council, "this doesn't make any sense." Sudut pandang: Yunani harus meninggalkan default dan euro Jeffrey Miron berpendapat bahwa default membebankan kerugian pada mereka yang mendapat keuntungan di masa yang baik Jeffrey Miron, dosen senior di bidang ekonomi di Harvard University, berpendapat bahwa konsekuensi dari default Yunani dibesar-besarkan. Tidak hanya akan default lebih baik untuk Athena, itu akan

memiliki manfaat bagi Eropa juga, ia berpendapat. menghasilkan dana talangan lebih dari Uni Eropa. Rakyat Yunani menanggapi dengan protes kekerasan dan pemogokan.Ini masih harus dilihat bagaimana Uni Eropa akan merespon. Pertanyaan bagi Yunani adalah apakah melanjutkan jalan baru-baru ini - upaya lanjutan pada penghematan, yang melakukan sedikit untuk menjinakkan defisit, diikuti dengan hanya cukup bailout dari Uni Eropa untuk menghindari kegagalan - atau apakah untuk akhirnya mengakui jelas: harus default pada perusahaan utang negara, meninggalkan euro, dan pergi caranya sendiri. Jika Yunani default, negara mendapat bantuan langsung dari pembayaran bunga utang yang menghancurkan, meninggalkannya dengan defisit primer yang relatif sederhana yang tidak termasuk pembayaran bunga besar Yunani dihadapkan dengan sekarang. Dalam skenario seperti itu, tekanan untuk penghematan karena itu akan berkurang. Hal ini akan memungkinkan Yunani untuk memilih kebijakan yang mendorong pertumbuhan, daripada orang yang mengecilkan defisit, tetapi menghambat pertumbuhan dengan menerapkan pajak yang lebih tinggi. Lanjutkan membaca cerita utama

Sebuah standar bahasa Yunani memiliki satu manfaat lebih lanjut: mengirimkan pesan ke kreditor bahwa pinjaman membawa resiko yang nyata ". Jeffrey Miron Dengan meninggalkan euro dan mengadopsi mata uang benar dihargai, Yunani dapat mengembalikan daya saing internasional. Ini berarti permintaan kerja yang lebih besar dari kedua sumber dalam negeri dan luar negeri.