EU seeks to calm jumpy markets

EurActiv reported that European leaders sought on the 2 August 2011 to soothe concerns that the euro zone crisis was worsening as bond yields in Spain and Italy hit record levels and to dampen speculation that Cyprus was set to join the EU support mechanism.

In a letter to EU heads of state on the 3 August 2011 (made public on the 4 August 2011), European Commission President Barroso warned that the eurozone debt crisis was still spreading despite agreement on the 21 July 2011 over a bloc-wide bailout fund.

• Primary Source

EUObserver, 5.8.11: World markets plunge amid worsening euro-crisis http://euobserver.com/9/32686

EUObserver, 2.8.11: EU 'astonished' at soaring costs for Italy and Spain http://euobserver.com/9/32675

ESO: Background information: Spain and Italy rush to quell fresh crisis http://www.europeansources.info/record/spain-and-italy-rush-to-quell-fresh-crisis/

ESO: Background information: Cyprus bank urges action to avert bail-out http://www.europeansources.info/record/cyprus-bank-urges-action-to-avert-bail-out/

EUObserver, 4.8.11: Barroso raises alarm about severity of euro crisis http://euobserver.com/9/32683

BBC News, 4.8.11: Euro crisis: Barroso warns debt crisis is spreading http://www.bbc.co.uk/news/business-14404852

Deutsche Welle, 4.8.11: Barroso raises spectre of further EU debt contagion http://www.dw-world.de/dw/article/0,,15296351,00.html

France24, 4.8.11: EU commission chief calls for bigger bailout fund http://www.france24.com/en/20110804-eu-commission-chief-bailout-fund-eurozone-crisis-financial-spain-italy-economy

European Commission: Memo/11/546: Statement by President Barroso on the euro area sovereign bond markets http://europa.eu/rapid/pressReleasesAction.do?reference=MEMO/11/546&format=HTML&aged=0&language=EN&guiLanguage=en

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