Europe’s Crisis Deepens as ‘Time Runs Out’

Finance ministers from all over Europe recently concluded a two-day meeting in Poland, but have failed to make considerable progress toward resolving the worsening debt crisis.

Attending the meetings was Timothy Geithner, the US Treasury secretary, who rejected a European idea for a global tax on financial transactions. The proposal was then debated at length. In the meantime, the Greek Prime Minister George Papandreou cancelled his trip to the US,  as the October deadline for the $11 billion aid package looms nearer.

America’s appeal for urgent decisions was strengthened by two European ministers whose nations have thus far remained outside the single currency.

“The Eurozone leaders know that time is running out, that they need to deliver a solution to the uncertainty in the markets,” said Britain’s chancellor of the Exchequer George Osborne. He added that he wants action over Greece and the “weakness” in Europe’s current banking system.

Anders Borg, Sweden’s finance minister, added that “The problem is that the politicians seem to be behind the curve all the time. We really need to see some more political leadership.” He added that there is a “clear need for bank recapitalization.”

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