Gordon Brown says France and Italy may need bailout
Published: 15th Jun 2012 17:10:16
Gordon Brown has warned that France and Italy may need to be bailed out like Spain because of the unfolding eurozone crisis.
The former UK prime minister said it was not only Greece, Portugal and Ireland facing the threat of euro exit.
But, he added, some of the EU's largest countries such as France, Spain and Italy were also at risk.
Mr Brown also warned that Germany might have to seek additional funding to safeguard its banks.
In a stark warning ahead of next week's G20 summit in Los Cabos, Mexico, Mr Brown said: "The euro area is finally approaching its own day of reckoning."
The former PM said, in a blog for Reuters, that "we are in a downward spiral that shows no sign of ending."
He accused EU leaders of adopting "well-meaning half measures."
"If there is a failure of global leadership next week [at the G20], not only will Europe be condemned to a lost decade but the whole world will pay a fearful price."
The G20 summit is a meeting of 19 countries plus the European Union, which between them account for 80% of global gross domestic product and 80% of global trade.
As host, Mexico's President Felipe Calderon wants the summit to concentrate on how to reduce food price volatility, promote green growth, and boost investment in scientific and agricultural technology.
But in truth, the eurozone crisis is likely to overshadow proceedings, with all eyes on Germany as the potential answer to the region's debt crisis.
Mr Brown accused eurozone leaders of seeking to "wish away" Spain's banking problems by providing only 100 billion euros of credit when their banks had two trillion euros of liabilities.
Mr Brown also predicted that Italy and France may have to follow Spain in seeking a rescue package for their banks.
"Even German banks," he said, "which are some of the most highly leveraged, are not immune from needing more capital."
Mr Brown said "the final showdown" could be postponed but eurozone leaders had to accept "the inescapable logic" of a fiscal union.
At 00:59:22 in PoliticsA "badly managed" Home Office scheme resulted in asylum seekers being placed in "unacceptably poor" housing, the Public Accounts Committee has said.
At 00:48:17 in HeadlinesSouth Sudan's President Salva Kiir has sacked the head of the army.
At 00:39:06 in EnglandThe decline of some regional English dialects has been mourned for years but now sign language is being hit by the same trend. Researchers say regional variations that produced 22 different ways of signing the word "purple" are dying out.
At 00:29:16 in HeadlinesFormula 1 boss Bernie Ecclestone is set to appear at the start of a trial on bribery charges in Munich.
At 00:16:58 in BusinessEnergy grids across the world are struggling to cope with a surge in demand for electricity and increasingly volatile supply from renewable power sources.
At 00:11:50 in SportEighteen-time US Olympic swimming champion Michael Phelps says concerns about weight gain were behind his decision to return to the sport.
At 00:09:32 in BusinessBeckford's Tower stands proudly on the hills overlooking the spa city of Bath, a monument to eccentricity and wealth.
At 00:01:40 in TechnologyDrones are becoming more common in our skies, performing a variety of tasks, from taking photos to monitoring crops and potentially even delivering broadband.
At 00:01:37 in HeadlinesBritish counter-terrorism police chiefs are making an unprecedented appeal to Muslim women to urge men against travelling to possibly fight in Syria.
At 23:52:22 in SportA turbulent three days for Manchester United has ended with them fending off allegations of unprofessionalism labelled against them by the League Managers Association (LMA).
Harvard CitationBBC News, 2012. Gordon Brown says France and Italy may need bailout [Online] (Updated 15th Jun 2012)
Available at: http://www.ukwirednews.com/news/1434955/Gordon-Brown-says-France-and-Italy-may-need-bailout [Accessed 24th Apr 2014]
News In Other Categories
Drones are becoming more common in our skies, performing a variety of tasks, from taking photos to monitoring crops and potentially even delivering broadband.
South Sudan's President Salva Kiir has sacked the head of the army.
The Irish education minister has proposed a radical shake-up of the further education sector.
US actress Jodie Foster has married her girlfriend, Alexandra Hedison, the actress' representative confirms.
A "badly managed" Home Office scheme resulted in asylum seekers being placed in "unacceptably poor" housing, the Public Accounts Committee has said.
The decline of some regional English dialects has been mourned for years but now sign language is being hit by the same trend. Researchers say regional variations that produced 22 different ways of signing the word "purple" are dying out.