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The European Central Bank also refused to toss recession-hiteurozone economies an easy-money boost, keeping interest ratessteady at 1.0 percent. European leaders are under intense pressure to take bold action totry to resolve the two year old crisis at a June 28-29 summit. Obama and Cameron kept up that pressure, agreeing in a late-nighttelephone call "on the need for an immediate plan to tackle thecrisis and to restore market confidence, as well as a longer-termstrategy to secure a strong single currency," according to aDowning Street spokeswoman. Teetering Spanish banks are now the urgent focus with Madrid askingfor deeper eurozone integration so European funds can be directlypumped into lenders so it can avoid the Irish trap where saving thebanks dragged the country into a bailout. Spanish Finance Minister Luis De Guindos signalled Madrid will haveto move quick, making a decision within the next two weeks on howto help its lenders who are struggling to raise 80 billion euros($100 billion) in capital to shore up their books. Europe "must help nations in difficulty," Spanish Prime MinisterMariano Rajoy told lawmakers on Tuesday as he called for a laundrylist of EU reforms viewed with suspicion by Germany includingdeposit guarantees, a banking union, and eurobonds. The proposal gaining the most traction outside Germany is tointegrate the eurozone's national banking systems, which wouldsever the link between banks and sovereign finances. But powerhouse Germany resisted the pleas, saying whatever help theEU can provide to an increasingly desperate looking Madrid shouldcome from tools, and according to rules, that exist already. Government spokesman Steffan Sibert said the reforms asked for byRajoy required long-term changes beforehand, while reiterating thatonly governments can apply for cash from the European bailoutfunds. "These instruments must be applied for by governments .. whether agovernment wishes to apply is purely a matter for the government,"Seibert said. A leading member of German Chancellor Angela Merkel's coalitionsarcastically called the banking union idea "a new, admittedlycreative, way to tap German solvency." "Every eurozone country has to take responsibility for its ownbanks," said Christian Lindner, one of the Free Democrats party'srising stars. But Spain has so far refused to seek financial assistance from theEuropean Union that would come to the government with tough stringsand a politically humiliating austerity programme attached to it. But some kind of rescue for Spain was beginning to emerge, andFrench Finance Minister Pierre Moscovici said EU partners are readyto "mobilise very rapidly" to come to Spain's financial assistance. According to the German daily Sueddeutsche Zeitung, a compromiseunder discussion could see European Union aid paid to the Spanishstate-backed Fund for Orderly Bank Restructuring (FROB). The Spanish government in turn would push through mergers orclosures of weakened Spanish banks, the German newspaper saidWednesday. The report said that would preserve Madrid's sovereignty and upholdthe German position that EU funds should be paid only to publicinstitutions. But a Madrid newspaper reported Wednesday that the European Unionwill demand as part of any bailout that Spanish banks set up a new,multi-billion-euro cushion against home mortgage failures, whichthey haven't been required to do so far despite daily headlines ofhome evictions and unemployment soaring to a record at 24.4 percentin the first quarter of 2012. ECB chief Mario Draghi sought Wednesday to calm fears, saying theeurozone debt crisis is "far" from as bad as the market meltdown inthe wake of the 2008 collapse of US investment bank Lehman Brothers "We are rightly alarmed but I would say that we are still far awayfrom that situation," he said. Analysts had widely expected the ECB would hold off cuttinginterest rates until at least next month, when the outcome of theGreece's second parliamentary elections in two months will beknown. Surveys have put in pole position in the June 17 vote the radicalleftist Syriza party that has pledged to tear up the EU-IMF bailoutaccord, a move that would likely lead to Greece's bankruptcy andleaving the euro. We are high quality suppliers, our products such as China utp lan cable , indoor fiber optic cable for oversee buyer. To know more, please visits cat7 lan cable.
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