Tags:
Journalism of Courage
German Chancellor Angela Merkel dashed any lingering hope in financial markets that Europe would issue common euro zone bonds to underpin its single currency after Spain formally became the fourth state to request a financial rescue.
The Spanish government applied for bailout loans on Monday to recapitalise banks laden with bad debts as the euro and shares fell due to investors scepticism that a European Union summit this week will act decisively on the blocs debt crisis.
Merkel,who leads Europes biggest economy and the main contributor to its rescue funds,said sharing debt liability within the 17-nation euro area would be economically wrong and counterproductive.
At a two-day Brussels summit starting on Thursday leaders will discuss a cross-border banking union,closer fiscal integration and the possibility of a debt redemption fund,as part of efforts to tackle a worsening crisis.
France,Italy and Spain have pushed hard for steps towards mutualising debts and liabilities through a joint bank deposit guarantee,a common bank resolution fund and issuing common euro zone bonds. The conservative German leader adamantly rejects such ideas and is keen to squelch them before the meeting.
When I think of the summit I feel concerned that yet again we will have too much focus on all kinds of ways of sharing debt, Merkel told a conference in Berlin.
Critics say that by refusing any such collective solutions,Berlin risks unleashing speculative attacks on Spanish and Italian bonds,hastening rescues which the euro zones rescue funds are too small to manage.
Spanish and Italian bond yields rose as doubts spread that the EU summit would take any decisive action to stem the debilitating crisis,which began in late 2009. The euro fell against the dollar and investors sought shelter in US government debt.
Coal Min against separate appellate tribunal for regulator
The coal ministry has refused to set up a separate appellate tribunal as a quasi-judicial body for hearing appeals against the decisions of the proposed coal regulator. Instead,it has recommended that the Appellate Tribunal for Electricity,established under the Electricity Act 2003 should be empowered for hearing orders passed by the watchdog. In the note the ministry argued that the Petroleum and Natural Gas Regulatory Board Act 2006 also provides for appeals to the Electricity Tribunal by adding one technical member to it. Similarly,it is proposed that the appeals against the decisions of the coal regulatory authority could be filed before it by adding one more technical member (Coal) to the tribunal as selected by the selection committee.
