As the European crisis continues, financial leaders are seeking ways to gain crisis-management momentum in an effort to avoid future political pitfalls.
Ministers from across the region are now meeting in Brussels to debate the options of aiding Cyprus and Greece during this chaotic time.
Chancellor Angela Merkel’s council chairman Wolfgang Franz said: “We don’t know yet how we’re going to get out of the crisis. If the crisis is a marathon, we’ve got two-thirds of the course behind us. But the last third is always the hardest.”
Italian 10-year bonds increased to a year-to-date high of more than 4.5%, while the euro fell 2% against the U.S. dollar. The currency change came after European Central Bank President Mario Draghi expressed his concerns regarding the euro’s strength and its effect on recovery.
“The exchange rate is not a policy target, but it is important for growth and price stability,” Draghi said. “We want to see if the appreciation is sustained, and if it alters our assessment of the risks to price stability.”