The European Central Bank President Jean-Claude Trichet called on political leaders to do more to set their budgets as Spain stepped up measures to combat the threat of contagion.
"We have the same message for all countries -" take all measures to ensure that next year's fiscal targets credible, '"he told RTL radio in Paris yesterday. Germany said that no ad hoc European Union negotiations are planned today or tomorrow in the current sovereign debt crisis in the region.
European finance ministers have spent the last three weekends locked in talks on how to rescue crisis leave Ireland and the region plunged Spain debt. Spanish bonds with sinking more in at least 11 years on 30 November, the government is implementing new deficit-cutting measures and only a week after saying it would not be necessary.
Council of Ministers of Spain yesterday raised taxes on snuff and set a date for a pension reform, two days after saying it plans to raise about 14 million euros (18.4 billion) by selling shares in the operator the airport and the lottery company.
"The time is over, we have been talking for months," said Deputy Prime Minister Alfredo Perez Rubalcaba, referring to the pension plan. "We will work even harder to reach agreements."
Euro finance ministers from the region will meet in Brussels on 6 December for a regular meeting.
Market Map
A loss of market following the rescue of Ireland must ECB Trichet in a new wave of purchases of bonds this week. The extra yield investors demand to hold bonds Portuguese 10-year German bonds yesterday fell below 300 basis points for the first time since August. Ireland's performance in 10 years fell 30 basis points to 8.2 percent yesterday and the Spanish 10-year yield, which reached 5.67 percent on Nov. 30, closed at 5.1 percent.
The last round of the crisis is forcing the leaders once again to reaffirm their support for the euro.
Trichet said he spoke on "an overview of the euro area," including the economy, in a meeting with French President Nicolas Sarkozy in Paris yesterday. Sarkozy said the euro was credible and had become "the second global reserve currency, the government said in a statement.
"The German government backs the euro," said German Chancellor Angela Merkel yesterday in Bayreuth, Germany. "It is the struggle for a stable euro and will do everything possible" to encourage other EU countries into embracing a "culture of stability" in its public finances.
Options
Options for EU leaders if the crisis worsens include the promotion of its 750 billion euros ($ 992 billion) bailout fund into a temporary or asset purchase program, reduce interest rates on loans rescue or joint bond issue for the 16 euro countries.
Trichet is putting pressure on EU governments to increase their arsenal to combat the crisis, suggesting yesterday that the emergency fund could be supplied. Asked about the size of the cash pool yesterday, said "everything they do must be proportionate to the size of the challenges."
"This is true in all aspects, both qualitative and quantitative" he said. "They have to go as far as possible and be as efficient as possible."
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