Monday, September 19, 2011

Europe digs ever deeper debt hole

Europe digs ever deeper debt hole

Europe is digging an ever-deeper hole as it vows to resolve the eurozone crisis, experts said on Sunday as Greece readies for a pivotal week of international debt diplomacy.

"The otherwise fractious European Union leaders have united in their criticism of the markets, the IMF and now (US Treasury Secretary) Tim Geithner -- for being honest about the scale of problems facing the eurozone," Sony Kapoor, head of the Re-define think tank, told AFP.

En route to New York and a frantic week at International Monetary Fund, World Bank and G20 gatherings, he said "kill the messenger seems to be the new strategy" for an EU "plagued by parochialism, pettiness and procrastination."

"This does not bode well for the ability of EU leaders to respond to the big and urgent challenge posed by the unsustainable borrowing costs facing Italy," the eurozone's third economy, he said.

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