EU Leaders Anxious Over Eurozone Instability

EU fiscal problems have recently intensified as the euro hit at the end of April a 14-month low against the dollar. Photo by BGNES

European leaders are to hold an extraordinary meeting Friday amid panic on global markets over Europe’s public debts.

The Leaders of the Eurozone are said to discuss the uncertain future of the common euro currency.

The Portuguese Prime Minister Jose Socrates has expressed his concern over the instability of the euro.

During his official visit to Paris where he is to hold talks with French President Nicolas Sarcozy before the extraordinary meeting of EU leaders, Socrates said Friday that “he is worried about the future of Europe and the euro.”

Meanwhile, economists have warned that the current economic crisis is a serious threat to the euro currency.

Ireland, Italy and Spain have also expressed their concern over the growing EU public debts and the serious drop-down of the euro.

Non-EU member states have also been alarmed by the euro hitting a 14-month low against the dollar.

Japan said it would inject more than 20 billion US dollars in liquidity into financial markets, with Prime Minister Yukio Hatoyama admitting he was "very concerned."

Australian Prime Minister Kevin Rudd also outlined his "considerable concern" after Australia's market lost almost three percent in early trade.

Sixteen of the European Union's 27 member states already use the euro. All the rest except Britain, Denmark and Sweden are obliged by treaty to join as soon as they are judged fit.

Bulgaria has targeted 2013 as an entry date, but was forced to shelve that target in April after the government unexpectedly announced that its deficit for 2009 was double what had been reported. The country is now eyeing a 2015 accession.

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