Europe:critical talks loom

And old rivalry has appeared again, as European leaders met, to hammer out a resolution to Europe’s debt crisis.

The French President, Nicolas Sarkozy, declared that a crucial meeting, to be held in Brussels on Wednesday, should be restricted to nations which use the Euro.

He sharply criticised the British Prime Minister, David Cameron, whose country has persisted with its own currency, instead.

Mr Sarkozy was quoted as telling Mr Cameron: “We are sick of you criticising us and telling us what to do.”

But the French had no more success with Mr Sarkozy’s argument, than their rugby team had in its World Cup clash with the All Blacks in New Zealand, at the weekend.

Mr Cameron had said all EU leaders should be present to debate issues which could affect them in one way or another.

On Sunday morning the leaders of all the European Union’s 27 members held talks about the Greek debt crisis, recapitalising banks, and bolstering the bailout fund.

This was followed in the afternoon by a separate meeting of the 17 nations that use the euro.

But all EU leaders are now set to attend the final meeting on Wednesday, which was originally meant to be attended by only the 17 countries that use the euro.

Investors – and governments – throughout the world will be watching Wednesday’s meeting very closely.

Australia’s Treasurer, Wayne Swan, said:”…it is true that they have been mucking around for 18 months.”

But he added: “The time for half measures is over.”

Mr Swan warned of “global” consequences, if Wednesday‘s talks fail.

“…we do need to see a comprehensive set of plans,” he said.

Mr Swan said he did fear the fallout, if that did not happen.

“…We will see a protracted recession in Europe,” he warned.

Mr Swan said the implications that would have for the rest of the global economy are “obvious.”