Latest update: 18/09/2011 
- Europe - financial crisis - USA

Workers take to the streets as debt summit concludes

Workers take to the streets as debt summit concludes

Europe stood defiant in the face of US criticism about its public finances Saturday as finance chiefs wrapped up two days of talks in Wroclaw, Poland. Outside the summit, at least 20,000 European workers protested against austerity measures.

By News Wires (text)
 

AFP - Europe hit back Saturday at US lecturing on its public finances, insisting the eurozone is better off than global rivals as talks on the debt crisis drew to a close.

The defiant stand came as finance ministers wrapped up two days of talks in Poland that delayed a decision on blocked loans for Greece, failed to resolve a row with Finland which wants collateral and stirred a fruitless debate about introducing a financial transactions tax.

"Taken as a whole, it is probably better than other major advanced economies," European Central Bank chief Jean-Claude Trichet said of the 17-nation eurozone's debt record as the ministers and central bankers from the 27-state European Union headed for the exit.

Discussions were marred on Friday by a spat with guest US Treasury Secretary Timothy Geithner, who prodded the eurozone to take quick action on the debt crisis anchored in Greece.

As police said at least 20,000 workers from around Europe swarmed the streets of Wroclaw to protest against EU-ordered austerity, Trichet described the medium-term prospects as "quite encouraging if you compare with other major advanced economies."

He tipped a combined year-end, annual deficit of 4.5 percent of Gross Domestic Product -- whereas the United States expects its public deficit to reach 8.8 percent this year.

By the time one factors in "superior" cumulative debt levels elsewhere, Trichet said the overall eurozone outlook was therefore not as endangered as some others.

Credit rating giant Standard & Poor's stunned leaders when it downgraded the US long-term credit rating last month.

Even before sparring with Geithner on Friday, German Finance Minister Wolfgang Schaeuble had highlighted the United States as carrying the world's heaviest debt burden.

And that was despite a new plan to chop at least $1.2 trillion (870 billion euros) over 10 years off the runaway total logged in full public display on a Times Square debt clock in New York City.

Host Poland, which holds the current EU presidency, took the decision to invite Geithner in a sign of spiralling global concerns.

EU financial services commissioner Michel Barnier quipped that the bloc could invite China's finance minister next time.

"Governments and central banks need to take out the catastrophic risk to markets," Geithner said in Wroclaw, although Washington later denied he was writing "prescriptions" for Europe.

Geithner urged eurozone leaders to bolster a 440-billion-euro rescue fund for troubled member states, but saw that demand instantly rebuffed by Schaeuble.

Germany instead demanded Washington drop its opposition to a wished-for global financial transactions tax -- "emphatically" resisted by Geithner, according to Austria's Maria Fekter.

"We will do that within the European Union, and maybe also if it's impossible for the entire EU in the eurozone," said Belgian Finance Minister Didier Reynders.

Reynders also later told journalists that the sovereign debt crisis was going to last "another one to two years," the Belga news agency reported.

Polish Finance Minister Jacek Rostowski, however, highlighted "considerable divisions," although Schaeuble said he is no longer "that pessimistic," adding "the arguments are changing."

Ministers from the 27 EU states cut short their last day of talks in the southwestern Polish city before what was an unusually large demonstration by recent Polish standards.

After postponing until October a decision on whether to hand over the next eight billion euros in loans to Greece, the EU and international partners will hold telephone talks with the Athens government on Monday.
 

 

Comments (21)

Geithner addresses

It's embarrassing that the uS sent a tax cheat to scold Europe for financial overreach -

Avoiding the issue

Although your headline was about worker protests, 20,000 people no less, you spent almost every word of the story channeling the views of central bankers.

Avoiding the issue

Although your headline was about worker protests, 20,000 people no less, you spent almost every word of the story channeling the views of central bankers.

European debt

The best way for the US to answer Europe is to close all US military bases in Europe and bring all US troops home from Europe and the Middle East. Time to allow the EU to sink or swim.

protesters

I guess socialism doesn't work very well when you run out of other peoples money. It will NEVER work until humanity gets rid of tendencies toward greed and power.

Europe

Socialism creates deadbeats.

Finance

The US certainly has absolutely no room to advise other on financial matters considering how bad of shape we are in. Everyone says it's a world economy but it sure feels local to me.Taxing transactions could be good to raise money and it's not bad for the banks as it just cuts their profits slightly. The bankers and speculators are why we're in the shape we're in.

PAY FOR YOUR OWN PROTECTION

While the USA spent Trillions in the last 60 years to protect European countries and still does the USA would have NO debt- I say Close DOWN all our Military Bases in all of Europe and we will save Trillons and you will all go Bankrupt having to spend the money to protect yourself-I will write to our next REPUBLICAN PRESIDENT in 2012 to do right that CLOSE DOWN OUR MILITARY BASES and bring our Boys and Girls home - protect yourselfs--

The Grand Plan

Europpe has caved to the Global Elite, and now they are being lectured by the Global Elite. Kissenger.Scrowcroft.Geithner.Brezinski are the mouthpieces for the New Global Order. "Europe.. step into line or face (a)terrorism (b) riots in the streets (c) both of the above. Europe, don't you understand? This is more of the Global mafia directing you by forcing the fear factor. Watch "Obama Deception" on YouTube and learn all about it. They're using a contrived global economic meltdown as a precursor to their deviant behaviour.

Geithner EU

What in the h e l l was that m o r o n Geithner doing in Europe when he can't even manage his own business. O'Bama is just a trouble maker who hasn't got a clue on what he is doing. Now they are directing their anger at their own failed system at us that they would not even have if it wasn't for the U.S.. They have forgotten they would all be speaking German or be light shades if it wasn't for our grandfathers blood. What a bunch of loser socialist.

whining Euro-Weasel parasites

Ha! Ha! The Euro-Weasels ran out of other peoples' money!

Geithner

Geithner is dumber than a box of rocks and an extreme socialist to boot. Anyone listening to his advice is dumber than him.

Geithner is the pot calling

Geithner is the pot calling the kettle black. He should resign. And the US taxpayers should not be on the hook for bailing out European banks. We bailed them out after WWI, WWII, and through the Cold War. It's time they grew up and took care of their own business.

2 Decades of Apathy, Betrayal, and Treason

The U.S.A. is not far behind, and I wonder, might the following apply to the U.K., France, as well?

By a sane (not a fly) anonymous poster:

In two decades the corporatocrats have decimated high tech industries and other decent paying professionals

I haven’t expected any help from any union nor professional society for almost two decades, which is plenty enough time for unions or professional societies to prove which side of the road they are riding on. The only professional group that has done anything has been Programmers Guild. Twenty years of no help from any union or professional society has resulted in *two* lost generations of America’s best and brightest who once had lofty dreams of building a better America.

Now, America is a broken nation with crumbling infrastructures and off-shored manufacturing industries. It makes one want to sit down and cry for what could have been had there only been an interest in doing what was best for America by standing up for American professionals. It was not for the lack of effort of individual American professionals like Dr. Gene Nelson, Rob Sanchez, and Kim Berry but it was, and is, awfully lonely out there without any union or society voices along side them.

Years ago I threw in the **bleep** on the H-1B issue because I saw it as a lost cause because it was just too lonely out there without the backing of professional groups to stand beside America’s professionals.

Simply put — too many hogs at the H-1B slop trough of greed. Thanks to Rob, Gene, Kim and others who have been willing to continue to stand up for American professionals.

What could have America been in the 21st Century? Instead of offshoring, destruction of U.S. manufacturing, and destruction of US research and development we could have had groups of activists willing to stand up for America’s foundation for growth and development through its vast pool of scientists, engineers, and programmers.

Instead, the future of America has been shattered. Generations of professionals have been lost and dreams destroyed. I lay blame for this destruction at the feet of those who have supported the H-1B and L-1 Visa; and those who backed NAFTA and CAFTA.

Perhaps some day these people will wake up one morning and look themselves in the mirror and realize the awful truth of what they have done to their fellow Americans and how they have contributed to massive U.S. unemployment and the shattering of America’s industries and research.

Perhaps they will realize how their lack of support has destroyed the lives of thousands of American professionals and their families, and brought America to the brink of the economic crisis that we now stand at. A crisis brought on because America no longer produces anything and no longer develops anything of value — all the while tens of thousands of brilliant and well educated Americans could have been building up America.

And, at that moment of realization, they will weep for what they could have done to help America but did not.

Life is about choices. Some people have chosen to do that which is decent and right. To these folks: Dr. Gene Nelson, Rob Sanchez, Kim Berry and others — may God bless each and every one of you. Maybe through your efforts some future generation will be able to have their dreams of careers in science and engineering fulfilled. You have stood tall to do that which is morally right. You are the kind of people that made America a great nation and maybe you will be the thread that can bring it back.

http://www.vdare.com/posts/20-year-anniversary-of-h-1b-two-lost-generations

The Markets will respond to this indecission.

I wonder how the markets will respond on Monday?

Workers take to the streets

"Europe stood defiant in the face of US criticism about its public finances..."

People are standing defiant okay but against any governmental cuts, while Trichet can't even mention the US or hypocrites Geithner and Obama .

This article is more of the same from French journos with their nationalism/anit-Americanism.

We are approaching the point

We are approaching the point where liberals have run out of other people's money.
First they will attempt to tax it, then,as in London, they will attempt to take it.
After all, 40 years of entitlements and easy money have convinced them what is ours, eqally belongs to them. When the come for it, we will be waiting and blood will run in the streets.
Afterwards, when we rebuild our society, every politician alive who allowed this fiasco will be jailed.

Workers or Trade Unionists?

I question the use of the term "workers" in this article. Don't confuse union members employed by governments protesting en masse with people who actually work for a living.

Workers

Workers? This was a march of tired old left wing rabble. A demonstration as spontaneous as the rising and setting sun. Bah, humbug!

Eurozone

"Taken as a whole, it is probably better than other major advanced economies,"
Back before penicillin there was a common saying "That's like applauding gonorrhea"

European mindset

Apparently the working folks in Europe are completely just don't understand simple economics. The PIGS need to cut spending and reduce taxation to stimulate their economies. Second, what is the work week in most of the European Nations? Fifty. fifty-five hours a week? Whatever it is, no nation can survive with such little worker output. It is fairly obvious those workers who are
taking to the streets are hell-bent in destroying their nation(s).

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