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European Crisis Live: Spanish Market Bounces Bank on Report of Short Selling Ban

Spanish banks, Greek debt ratings cut as investor concern about Europe's future intensifies

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More Musical Chairs in Australia’s Retail Industry

More changes are taking place in Australia’s embattled retail industry as Centro Retail Australia sold half of its stakes in three premium shopping centres, while Retravision Southern is teetering towards administration.

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Mongolia Approves Plan Limiting Foreign-Owned Investments in the Country

Weeks before a parliamentary election, Mongolia has approved a draft law that bans or limits the potential ownership of any foreign state-owned companies of its massive natural resources.

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Corvus Gold Obtains $5.5 M to Fund Nevada Gold Project

Canadian miner Corvus Gold has obtained the $5.5 million needed to fund and push through with the planned works at its North Bullfrog project in Nevada.

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David Cameron calls for urgency on eurozone crisis

After talks on treadmill with Barack Obama, UK prime minister says banks and firewalls must be strengthened

David Cameron has said a sense of urgency is needed to tackle the eurozone crisis following a meeting with the US president, Barack Obama.

The British prime minister called for measures to be put in place to strengthen banks and take forward deficit reduction after he held discussions with the president while both exercised on treadmills.

Speaking in Maryland, US, before the G8 summit, he said: “Contingency plans need to be put in place and the strengthening of banks, governance, firewalls – all of those things need to take place very fast,” he said.

The prime minister added that the eurozone should imitate British economic management, with an emphasis on deficit reduction plans, strong banks and an independent monetary policy.

“The eurozone I believe needs that approach as well,” he said. “You need a deficit reduction plan in order to get growth, in order to have the low interest rates that we have in Britain and are vital for the future of our economy”.

The political uncertainty in Greece threatens to further damage the economies of both the eurozone and Britain.

Britain is currently performing better in some economic indicators than the eurozone but European figures are dragged down by the economic problems of Greece, Portugal, Ireland, Spain and Italy. Britain is forecast to have growth of 0.4% in 2012 compared to the eurozone which expects to contract by 0.6%.

Unemployment is lower in Britain, which also has higher inflation. However, Britain’s current account deficit is much higher at 1.6% than the eurozone with 0.1%. Britain is also running a budget deficit of 7.7% compared to the eurozone’s 3.5%.

Cameron said German chancellor, Angela Merkel, was “absolutely right” that every country needed to have in place strong plans for dealing with their deficits.

“Growth and austerity aren’t alternatives,” he said.

“You need a deficit reduction plan in order to get growth, in order to have the low interest rates that we have in Britain and are vital for the future of our economy.”

Cameron said the leaders of the Group of Eight major economies – the US, Russia, Japan, Britain, France, Germany, Italy and Canada – were making progress on addressing the two biggest threats to their economies: the eurozone crisis and oil prices.

“We are addressing here the two biggest threats to all our economies and that is of course the eurozone crisis but also the very high oil prices that translate into high prices at the pumps and we are making progress on both,” Cameron told reporters.

But Obama has aligned himself with Italy’s prime minister, Mario Monti, and the new French president, François Hollande, in putting more emphasis on growth.

That places pressure on Merkel, who has pushed fiscal austerity as the prime means of bringing down huge debt levels that are burdening European economies.

guardian.co.uk

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G8 talks focus in on eurozone crisis as Merkel holds out on stimulus package

Obama and French president Hollande in step over possible growth package but gulf remains between European leaders

The eurozone crisis is set to dominate the Group of Eight (G8) talks Saturday, with President Barack Obama pledging leaders’ commitment to a compromise package of growth measures and fiscal responsibility.

Obama, speaking at the opening of the session, confirmed they will focus on measures to prevent the break-up of the eurozone, in particular the potential exit of Greece.

But there remains a huge gulf between the European leaders over how to kick-start the economy, a clash between the pro-growth French approach and the deficit-cutting approach of the Germans.

“All of us are absolutely committed to making sure that growth and stability and fiscal consolidation are part of an overall package,” Obama said today.

As he spoke, German chancellor Angela Merkel and British prime minister David Cameron nodded in agreement.

Cameron, after meeting the US leader early Saturday morning, said there has already been good progress on the euro issue and a “a sense of urgency”.

Obama met the G8 leaders at his presidential rural retreat Camp David on Friday night, hosting a dinner that was dominated by Iran, Syria and other international issues.

The bulk of the agenda Saturday is being given over the euro crisis, with the new French president François Hollande lined up with Obama in favour of a stimulus package and Merkel holding out.

Also attending are Canada’s prime minister, Stephen Harper, the Italian prime minister, Mario Monti, the Japanese prime minister, Yoshihiko Noda, and the Russian prime minister, Dmitri Medvedev, who is attending in place of the Russian president, Vladimir Putin. There are also two European Union representatives.

At the dinner of Friday night, there was broad agreement over forthcoming talks on dealing with the Iranian nuclear stand-off.

Following the private event, Obama told reporters that all those gathered were “firmly committed” to continuing with sanctions alongside diplomatic efforts to pressure Tehran.

He added: “Our hope is that we can resolve this issue in a peaceful fashion that respects Iran’s sovereignty and its rights in the international community, but also recognises its responsibilities.”

The US, Britain, Germany and France, along with Israel, have been putting the squeeze on Iran, claiming it is engaged in a covert attempt to secure a nuclear weapons capability. Tehran denies this.

The group said they did not expect all the issues to be resolved at the forthcoming meeting in Baghdad but they hoped the Iranians realised they would need to take concrete steps.

Leaders also discussed Syria, ruling out military intervention and instead agreeing to stick with a plan drawn up by former UN secretary general Kofi Annan.

Obama said G8 countries were “supportive of the Annan plan”, but added that it “has to be fully implemented”.

They also expressed a determination that, with a death toll of 6,000 already in Syria, there has to be a move towards political transition from the regime of Syrian president Bashar al-Assad.

Russia, a traditional ally of Syria, has been resisting tougher international action but Medvedev acknowleged at the meeting there would have to be transition.

The differences are over how to achieve that.

guardian.co.uk

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Should you do business in a hoodie?

Facebook founder Mark Zuckerberg can afford to dress down, even when he’s courting Wall Street suits. But what are the rules for the rest of us?

Tom Lamont Let’s break this in two. Should Mark Zuckerberg (who earlier this month upset potential Facebook investors by attending a meeting in casual clothing) do business in a hoodie? Absolutely. The founder of a society-altering business, the de facto president of an online nation-state with a population exceeding Europe’s, should do business in any clothes he wants. In his underpants, if the fancy strikes. In yours.

But should I, or you, or anyone else below Zuckerberg’s level of important-enough-to-act-with-impunity do business in a hoodie? Well, sure. Within reason there ought to be the freedom, in all forms of professional life, to dress in which ever way you feel you’ll work best. This is at the root of Zuckerberg’s admirable commitment to gymwear, surely. He did the early graft on the $100bn-valued Facebook while snug in a $30 hoodie from Gap, and at no point, as he watched his business grow, did it seem sensible to change out of comfortable clothes.

I work better in a jumper than a jacket, too. A suit isn’t comfortable to me, it doesn’t make me feel confident or capable, and just as importantly I don’t feel I’ve got the time or the spare loot to buy and then maintain a formal wardrobe. I don’t see why fusty tradition, principally upheld by the FTSE-Ferrari crowd, should insist on it as the professional norm.

Alex Preston I hate Mark Zuckerberg. I also hate the late Steve Jobs (hated? No, the hate’s still there). I don’t hate them specifically for their wardrobe choices: the casual grey hoodie, the Spirit of ’68 black polo neck. But their attire says a great deal about them. They are both what Slavoj Žižek would call “Liberal communists”: counter-culture geeks who take over big corporations. By dressing as they would in their free time, they seek to destroy the traditional boundaries between work and leisure. Zuckerberg’s hoodie marks him out as a denizen of the 24-hour mobile office, a globalised work-machine interfacing via his BlackBerry and iPhone with the world’s markets. He doesn’t wear a suit because suits can be taken off. Zuckerberg is still a CEO in his pyjamas, still CEO at 3am on a Sunday morning, still a CEO when drinking with Justin Timberlake at a disco (I may have mangled fact and fiction there…)

I have no wish to dictate what you wear to the office, Tom. And one can imagine the donnybrook that would ensue were the Observer to insist on suits and ties. But not all are lucky enough to work within the light-filled halls of a thriving media empire. Uniforms can be a carapace, a way of getting through the day. For most of the world, work is a five-day slog bookended by brief bright weekends with loved ones. Being able to pull on a uniform – whether that’s a suit, overalls or a white coat – helps people distinguish between who they are at work and at home or with friends. This is important, and I know I appreciated it when I had a job I loathed.

And one more thing: the hoodie Zuckerberg was wearing wasn’t from Gap. Embossed upon it in oh-so-subtle slightly darker grey was an advert for Facebook. Even in his dressing down he is ever the corporate man.

TL The noisiest complaints about Zuckerberg’s hoodie came from Wall Street figures who felt his outfit showed “immaturity” and (crucially) not enough respect for the wealthy businessmen who attended his meeting. Bit off, I think, for you to bring smocks and overalls into the equation, as if corporate suits were only another type of necessary professional uniform. Formal tailoring is one of those petty elitist ways that those in big-money jobs tell us and each other how well they’re doing. In Dickens’s day businessmen ate themselves fat to flaunt success. For a while, though, it’s been a case of getting down to Zegna to buy whatever virgin-wool pinstripe is on the inside cover of How to Spend It.

I loved that Jobs never wore a suit, and it gives me great pleasure now to think of the bafflement of the “dress for success” types when they consider Apple and Facebook, soaring despite being bossed by men who couldn’t give a shit how many ticket pockets you’ve got in your two-piece.

The Observer is brilliantly, admirably non-restrictive about employee attire, and I’m lucky to be relatively free to dress myself of a morning. I’m tall and skinny, and on the rare occasions I have to wear formal clothes I’m never quite at ease (like a footballer inspecting the pitch on FA cup final day). It’s a privilege to be able to choose, and it could only be a good thing – not the flummoxing burden you suggest – if such a relaxed attitude extended into other areas of work and business.

AP I felt justified calling on those other professions, Tom, because the heft of your argument seems to rest on what you wear to your job at the Observer – hardly a hotbed of corporatism (or is it?). We all know that journalists are a slovenly bunch, and I’m sure no eyebrows would be raised were you to turn up at your desk in egg-stained Y-fronts and a fuchsia foulard. But I’d hazard a guess that if you had a meeting with your editor to “map out your career trajectory”, or if you were called on to interview an MP at the House of Commons, or the Archbishop of Canterbury at Lambeth Palace, you might pause before the wardrobe in the morning. And this is because what we choose to wear sends a clear message to the person we are meeting with.

Zuckerberg’s hipster attire is an eloquent statement of his disregard for those on whom his business’s continued expansion relies. On this, a red-letter day for his blue-logoed company, when he was turning up cap in hand and asking a group of professional investors to trust him that Facebook was worth its (ludicrous) $104bn valuation, his choice of dress was a sign of arrogance, a condescending reminder to the money-men that he isn’t one of them (except, of course, we all know he is). I’m leaning on rather old-fashioned concepts of respect and good manners here, and the fact that his investors are, as you point out, Wall Street monsters who eat boiled babies for breakfast should win the day for your pro-scruffy stance. But if I’m giving a lecture or a reading I’ll wear a jacket. I might even wear a tie. I’ll choose to dress in a way that conveys to the audience my regard for them, my thanks that, of all the things they might have been doing that day, they chose to come and listen to me.

Clothes are a highly complex system of signs and symbols, our most sophisticated means of sending messages about ourselves to the world around us. You may think it strange that anyone still cares about what we wear, but people do. By choosing to address a formal audience in informal dress, we not only risk making them feel foolish; we say to them that we don’t care about their values, about the conventions of the world they inhabit. It feels contemptuous and presumptuous and unpleasant. I’m not saying everyone should wear a suit to work every day of the week – I’m merely suggesting that we should think carefully about what our choice of clothing says about us and our regard for others.

guardian.co.uk

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Moody’s Downgrade 16 Spanish Banks, Bonds Hit

Spanish banks downgraded by Moody's in view of the continued unemployment and recession.

See the rest here: Moody’s Downgrade 16 Spanish Banks, Bonds Hit

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Facebook staff celebrate multi-million dollar windfall outside the limelight

As the social network floated on the stock market, its employees marked the occasion with discretion … and onion rings

The guests wore jeans and T-shirts. The venue was a sports bar. The menu was buffalo wings, mini-burgers, pizza and beer. The entertainment was a mechanical bull, which bucked in a corner, and screens showing basketball and football. Welcome to a hundred-billion dollar party, Facebook-style.

It looked like college kids out for a typical Friday night, but the scene in the Old Pro, an unremarkable bar tucked off a sidestreet in Palo Alto, the heart of Silicon Valley, was the celebration of a cultural and financial milestone which mesmerised the world.

“Yeah, it’s been a big day,” grinned a lanky software engineer. “So we’re here chugging a few.” He checked his watch. “Still happy hour.”

He and his colleagues clinked beers, manifestly happy. Facebook had just completed its first day as a public company after one of history’s most frenzied share sales valued it at $104bn. The trading took place in New York but the company’s founder, Mark Zuckerberg, stayed with 2,000 employees at their colony in Palo Alto, the capital of social media.

As the largest shareholder Zuckerberg, 28, ratcheted up a paper fortune of $20.4bn. An estimated 88 employees saw the value of their individual holdings exceed $30m. The extraordinary sums, the website’s mercurial rise and its role in connecting more than 900 million people made the initial public offering (IPO) an event watched far beyond Wall Street.

Had they received this windfall, Russian oligarchs might have celebrated by buying Manchester United. Investment bankers might have bought bigger yachts and jets. The lords of tech munched onion rings. “The taste that can’t be beat,” according to the bar’s website.

“This town, it’s a very unusual place,” said David Batista, manager of the Palo Alto Creamery, a cafe where Zuckerberg used to map strategy over milkshakes. “You could be sitting beside a billionaire and not know it. A day like today and where do they go? A sports bar. It’s all very low key.”

Internet revolution, Hollywood movie, global impact on human interaction, byword for self-promotion – few outsiders consider Facebook to be discreet. But employees are exactly that.

“You might think as soon as they make a million they buy a house in Palo Alto, but a lot of these guys live in apartments, don’t have girlfriends and bicycle to work. And they work all the time,” said Alan Dunckel, an estate agent. Those who did buy houses – $1,000 per square foot – did not flaunt wealth, he said. “They wear T-shirts and hoodies.” Many sellers, said Dunckel, had withheld properties in hopes of a boom. “Expectations are huge.” Facebook has promised $1.1m to Menlo Park’s cash-starved authorities to fund capital projects, prompting hopes more will follow.

The employees’ celebration at the Old Pro, however, was muted. Whereas non-Facebook groups booked tables with their names on them, Zuckerberg’s troops clustered in anonymous little knots. They had been drilled by headquarters not to speak to the media. Ostensibly it was to avoid spooking the markets at a delicate time but it followed a company tradition of reticence – opacity, critics say – ironic given concern over Facebook users’ privacy guarantees.

“Sorry, buddy. Normally I’m really interesting to talk to but I just can’t right now,” one employee, drinking an ale, smiled sheepishly. Others recoiled as if questions were radioactive. One confirmed a rumour that Zuckerberg was hosting a party for some staff that night at his home – a relatively modest $7m house – several blocks away.

Blink on the highway and you could miss the company’s Menlo Park headquarters, a nondescript complex of two and three-storey buildings which employees of the previous occupier, Sun Microsystems, nicknamed San Quentin, after the jail. An entrance billboard with the familiar thumbs-up icon is Facebook’s only concession to marketing.

Instead of trumpeting its historic day the company rebuffed interview requests and corralled television crews in a car park across the street. While the Observer interviewed an employee’s mother inside the grounds – “a historic day for the way the world is going”, she was saying, beaming – security guards swooped, complaining about trespass, and threatened to summon police.

Friday’s bounty was preceded by austerity. On Thursday night employees made a round-the-clock “hackathon” of writing code. They wore newly printed T-shirts which said: “Stay focused & keep hacking.”

Some emerged early Friday for a ceremony at the centre of the complex known as Hack Square, where Zuckerberg rang the opening bell to start the Nasdaq stock market’s trading. Then they returned to their computers.

Canteens with free gourmet food and outstanding coffee keep staff inside the complex, disappointing nearby restaurants and cafes. Hairdressers like Nina Phana, however, who runs a salon two blocks down, say the techies emerge for the occasional trim and blowdry. “They tip good.”

A hundred billion dollars is a gargantuan sum for a company started eight years ago in a college dorm, and the fact that Friday’s frenzied trading ended with shares at $38.23, just a fraction over the opening price, stoked claims the company was overvalued.

Ali Ghotbi, an executive at Box, a cloud computing developer, shrugged off concerns of another dotcom bubble. “Back in the 90s it was, oh, you have a website, here’s a million dollars. Now it’s more controlled, more selective.”

A colleague, Tom Cochran, predicted Box would be Silicon Valley’s next big thing. “Our chief executive, Aaron Levie, is a genius like Mark Zuckerberg. But with charisma.”

The rate of startups in this corner of San Francisco bay – renovated premises filled with newly arrived geeks with Harvard and MIT baseball caps – suggests widespread confidence. Or hubris.

guardian.co.uk

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Fearful Greeks shift to the right as Europe pleads: ‘don’t self-destruct’

Polls show support for pro-bailout parties rising despite bitter opposition to austerity out of fear of eurozone expulsion

Greece’s election campaign, the second in as many months, officially kicked off on Saturday as polls indicated that fears of expulsion from the eurozone have helped consolidate support for parties backing the tough terms under which Greece received a bailout to keep its debt-stricken economy afloat.

Signs of a nascent backlash against anti-bailout groups that took the country by storm in an inconclusive ballot two weeks ago have emerged with surveys showing that the conservative New Democracy party is beginning to rally voters on concerns that opposition to EU- and IMF-dictated austerity may lead Greece to the eurozone exit door.

Piling on the pressure, the visiting European parliament president, Martin Schulz, said that a €130bn rescue package reached with international creditors in March could not be renegotiated.

“Greece… shouldn’t self-destruct,” the German politician told the state-run TV channel NET. “Nor can we Europeans write Greece off. Greeks must believe in themselves.” He implored the nation at the centre of Europe’s escalating debt crisis to stay the course of tough austerity and structural reforms because that was the only assured way of boosting competitiveness.

Increasingly, the 17 June election is being portrayed as a referendum on the crisis-plagued country’s desire to remain in the eurozone.

Schulz’s appeal follows a series of similar exhortations by senior European officials who have insisted that repudiation of the tough terms that have allowed Athens to receive crucial injections of cash over the past two years would automatically pave the way to it leaving the 17-nation bloc.

Apocalyptic scenes have been invoked as policymakers have speculated over the chaos that would ensue if Greece, bereft of rescue funds, defaulted on its debt and reverted to its old currency, the drachma.

On Friday, the German chancellor, Angela Merkel, also weighed in, allegedly suggesting in a telephone conversation with the Greek president, Karolos Papoulias, that the nation hold a referendum on euro membership as part of the general election. The proposal was denied by her spokeswoman.

Antonis Samaras, whose New Democracy party emerged with the largest share of votes but fell far short of being able to form a government when Greeks went to the polls on 6 May, retaliated last week by reaching out to centrist forces that would fight against the vociferous anti-austerity bloc. He said his party would lead a pro-European “front of resistance against catastrophe”.

The strategy appears to be paying off, with two polls showing the conservatives for the first time ahead of the radical left Syriza party. The leftwing alliance, a fierce opponent of the “inhumane” belt-tightening imposed in return for aid, had been the frontrunner since emerging as the surprise runner-up in this month’s poll.

In an interview before a visit to Berlin for talks that will include discussions with representatives of the German government, Syriza’s firebrand leader, Alexis Tsipras, reiterated his determination to “cancel” the loan accord, even going so far as to liken it to “assisted suicide”.

But he also appeared to soften his stance, saying he hoped to initiate a “substantive dialogue” with Germany and France, which have bankrolled most of the €240bn in emergency aid earmarked for Greece.

“If you don’t talk you can’t find a solution and so far I believe there hasn’t been any real discussion or political negotiation,” he told the Observer. “The memorandum,” he said, referring to the bailout conditions, “was a political decision that was taken without consulting the Greek people and it has proved catastrophic.”

Tsipras’s meteoric rise from marginal leftist to possible commander of the political scene has been backed by younger Greeks worst hit by the record levels of unemployment. The young politician has promised to reinstate jobs and pensions by nationalising banks, stopping the closure of state utilities and taxing the rich.

But among older Greeks, who still have vivid memories of military rule and the tumultuous politics of isolation, Syriza’s anti-austerity platform has unleashed fears that, if he wins, the country will be playing with fire.

Although voters punished mainstream parties on 6 May for enforcing cuts that have seen wages drop by up to 40 % – and austerity rage has far from dissipated – it could just be that the fear factor is starting to take effect with a backlash that few would have imagined a week ago.

guardian.co.uk

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Indian Rupee Slumps To Record Low Against US Dollar

The Indian rupee fell to a record low Friday as it succumbed to pressures of the debt crisis looming over the euro zone and the weak domestic indicators.

Read the original here: Indian Rupee Slumps To Record Low Against US Dollar

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Germany isolated over euro crisis plan at G8 meeting in Camp David

Barack Obama and David Cameron want German chancellor Angela Merkel to set out a clear path forward for Europe

Barack Obama and David Cameron have clashed with the German chancellor Angela Merkel at the G8 summit in Camp David, demanding she set out a clear path for Europe to emerge from its current crisis.

The German leader resisted pressure for fresh measures that would include looser monetary policy for the European Central Bank, enabling quantitative easing similar to that deployed by the Federal Reserve and the Bank of England.

Obama and Cameron discussed their joint position at a G8 summit in Camp David during a 7am meeting held on a treadmill, possibly the first UK-US bilateral to be conducted in a gym.

With pressure growing for world leaders to come up with a decisive plan for solving the crisis, it emerged the Germans were resisting the inclusion of details in the final communiqué about the best course of action for the eurozone.

The so-called sherpas, appointed by national leaders to draft summit communiqués, were at work until 4am on Saturday trying to forge a common position that said something specific about the euro crisis. It was being suggested that the Germans, partly due to their isolation at the summit, were pressing for specifics to be deferred to an informal EU council later this week, arguing it was not the business of the G8, including Canada, Russia, Japan and the US, to tell the EU states how to handle their economy. Cameron’s aides took the view that it would look distinctly odd if the communiqué did not highlight solutions.

Following a heated two-hour discussion, the final communiqué does refer to the crisis, saying “a strong and cohesive eurozone is important for global stability”, and adds “Greece should remain in the eurozone”. British sources were saying it was absurd that Merkel had tried to keep any reference of the euro crisis out of the communiqué and that the two-hour discussion had underlined to her the need for urgency.

The discussion on the global economic crisis at Camp David was opened at the request of Obama by the Italian prime minister Mario Monti, seen as the power broker in Europe between austerity and growth factions.

Britain, although outside the single currency and committed to a hardline deficit reduction programme at home, would like to see the ECB be more interventionist and stimulate demand through capital spending.

Referring on CNN to the austerity and growth divide, Monti said: “I think these two positions need to be bridged. If it is demand to remove bottlenecks in the supply of goods and services – so, broadly, investment demand – then I think we regard it more positively than the most conservative European authorities do.

“On the other hand, if it is an across-the-board crusade for more demand, then I believe that the German reluctance to that is not entirely unfounded.”

He also pointed out that for the US, as a reserve currency, it was easier to be relaxed about big expansions of demand. Cameron, speaking after his 35-minute workout with Obama, said: “What is required is a sense of urgency, but then clear action for strong banks and strong contingency plans for whatever might happen. The strengthening of the banks, governments and firewalls, all of those things need to take place very fast.”

He said Merkel was right to say every country needed strong deficit plans. “Growth and austerity are not alternatives,” he said, adding that the eurozone needed to follow the UK monetary policy, a reference to quantitative easing.

Suggestions that the G8 might advocate using strategic oil reserves to drag down the oil price appear premature, partly due to the recent fall in oil prices, and concerns that Obama would be seen to be putting US security at risk. The G8 will instead saying they will keep the idea under review.

guardian.co.uk

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G8 leaders end summit with pledge to keep Greece in eurozone

US and France succeed in putting promotion of growth at top of communique despite Germany’s resistance to stimulus package

Barack Obama and the other G8 leaders wrapped up their negotiations on the European crisis at Camp David on Saturday with a pledge to keep Greece in the eurozone and to promote growth.

The communique, which had the growth promise at the top, represents a victory for Obama and the new French president, François Hollande, over German chancellor, Angela Merkel, who has resisted calls for a stimulus package.

But it may be shortlived. The communique was short in detail and Merkel could re-establish her dominance next week at an informal European meeting.

The eight leaders meeting at the US presidential retreat in Maryland issued a communique declaring in its opening paragraph: “Our imperative is to promote growth and jobs.”

It added: “The global economic recovery shows signs of promise, but significant headwinds persist. Against this background, we commit to take all necessary steps to strengthen and reinvigorate our economies and combat financial stresses, recognising that the right measures are not the same for each of us.”

The communique was issued after almost four hours devoted to the eurozone crisis, which could have a negative impact on the US economy and Obama’s re-election chances in November.

Obama favours Europeans adopting a stimulus package similar to the one he instigated in the US in 2009, as does Hollande. They both also favour keeping the eurozone intact, including Greece, though this may in the end prove difficult.

The communique said: “We welcome the ongoing discussion in Europe on how to generate growth, while maintaining a firm commitment to implement fiscal consolidation to be assessed on a structural basis. We agree on the importance of a strong and cohesive eurozone for global stability and recovery, and we affirm our interest in Greece remaining in the eurozone while respecting its commitments.”

After three years of facing European leaders committed to deficit reduction, Obama has a new ally in Hollande. Speaking at Camp David, Hollande said European leaders were trying to balance the competing aims of reining in their budgets while stimulating their economies: “As President Obama noted, we need to pursue these two goals simultaneously: budgetary solvency and maximum growth.”

Obama and David Cameron clashed with Merkel on Saturday, demanding she drop her G8 resistance to setting out a clear path for Europe out of its crisis. Measures resisted by the Germans included a looser monetary policy for the European Central Bank that would enable quantitative easing similar to that deployed by the Federal Reserve and the Bank of England.

guardian.co.uk

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