Hollande to push for either ECB QE or Eurobonds - Germany and BUBA will have no a part of that ( at this point in time .) Sp when will we have the first Emrgency Summit after the " Informal " Summit comes up empty ?

http://www.telegraph.co.uk/finance/financialcrisis/9277743/Frances-Hollande-to-set-out-eurobond-plans-at-summit.html

"I will outline all growth proposals at this informal meeting on May 23," Mr Hollande told reporters at the end of a G8 leaders meeting in Camp David yesterday.

"Within this packet of proposals there will be eurobonds and I will not be alone in proposing them. I had confirmation on this at the G8."

The Brussels meeting on Wednesday is expected to focus on the French president's call for measures to kick start growth across the 27-country bloc, especially in the 17-nation eurozone, while maintaining efforts to cut budget deficits.

Mr Hollande has said he will press Berlin to lift its veto on issuing common eurozone bonds - debt issued for the whole currency and implicitly guaranteed by countries such as Germany - or allowing the European Central Bank to lend directly to governments.

Both ideas are "red lines" for the centre-right German government, although Chancellor Angela Merkel has not ruled out eurozone bonds as a long-term prospect if Europe takes more steps towards a tighter political and fiscal union.

Mr Hollande appeared to have had a political success at the G8 with the leading global industrialised nations, including the United States, Russia and Germany, agreeing to balance austerity with a new dose of US-style stimulus.

and...

http://www.telegraph.co.uk/finance/economics/9277732/Wealthy-eurozone-countries-must-back-weak-nations-George-Osborne-warns.html

"Eurozone countries must either stand behind their currency or face up to the prospect of Greek exit with all the risks that could involve," the Chancellor wrote in The Sunday Times today (£).

Mr Osborne, who watched the Champions League final with his German counterpart Wolfgang Schaeuble last night, warned of "enormous risks" to the UK economy if the crisis is not tackled.

He also said the British government is doing "contingency planning for all possible outcomes" to the eurozone crisis.

The Chancellor backed austerity plans for indebted nations but also put forward the idea of common euro-area bonds and more intervention from the ECB as ways to halt the immediate crisis.

"Those countries with high deficits and low competitiveness need to carry on confronting their problems head on. But in the absence of flexible exchange rates, the economic and political barriers to dealing with those problems wil only get worse without more support from the core of the eurozone.

"Secondly, the eurozone needs to follow what I described a year ago as the "remoreless logic" of monetary union towards greater fiscal integration and burden sharing. I mentioned eurobonds as one possible mechanism, and there are others."

New French president Francois Hollande also said yesterday he would make proposals for eurobonds at this Wednesday's European summit, as he outlines his ideas to stimulate growth and help ailing economies within the eurozone.

Mr Osborne also said the whole of Europe needs to become more competitive, through the reform of welfare and the labour market, particularly "job-friendly employment laws, better education and lower business taxes."

The Chancellor also pushed back against calls for Britain to loosen its austerity plans.

"One thing that would be guaranteed to suck Britain into the turmoil would be if we were led astray by a false distinction between a credible deficit reduction plan and a plan for growth."

The German finance minister today stuck to the hard line that Greece must abide by the austerity programme agreed earlier this year alongside the country's second international bailout.

"European solidarity isn't a one-way street," he told the Bild am Sonntagnewspaper. "You can't have one without the other. If anyone in Greece thinks that's the case, then they're massively fooling themselves and the voters."

He said a Greek exit from the euro was definitely avoidable.

"Naturally! Because that's exactly the goal we had in mind when we agreed to the extensive rescue efforts and reform programmes that free the country for years from having to get loans in financial markets," he said.

"Now it's up to Greece to abide by its obligations."

"We had a frank discussion on growth, but budgetary commitments are not under question. There's no reason to think any country was isolated," Mr Hollande said when asked if the meeting had marginalised Mrs Merkel.

"If we want to move forward we have to do it with everybody that counts in Europe, Germany naturally, but also the rest of the world."