Tensions rise over eurozone firewall

Fresh signs of tension between France and Germany over the eurozone rescue emerged on the 27 January 2012, as expectations rose that a much-delayed deal to restructure Greece’s sovereign debt could be agreed very soon.

As Lucas Papademos, the Greek prime minister, resumed talks with Charles Dallara, head of the Institute of International Finance, there was disagreement at the World Economic Forum in Davos over the size of European stability mechanisms and Germany’s insistence on tough austerity measures.

Spiegel Online International, 27.1.12: There Is No European Emergency Plan http://www.spiegel.de/international/europe/0,1518,811792,00.html

Spiegel Online International, 27.1.12: Critics Question Merkel's Fiscal Pact Proposal http://www.spiegel.de/international/europe/0,1518,811791,00.html

ESO: Background information: IMF takes tougher stance over Greek debt http://www.europeansources.info/record/imf-takes-tougher-stance-over-greek-debt/

ESO: Background information: Merkel: 'My vision is political union' http://www.europeansources.info/record/merkel-my-vision-is-political-union/

BBC News, 27.1.12: Greece debt talks 'close to deal' http://www.bbc.co.uk/news/business-16756505

Kathimerini, 27.1.12: Gov't gets down to nitty-gritty with troika http://www.ekathimerini.com/4dcgi/_w_articles_wsite1_1_27/01/2012_424458

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