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European leaders look to stave off further market falls

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European leaders look to stave off further market falls

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Conflicting and confused messages from Europe’s policy makers have raised concerns that next week may worsen the eurozone debt crisis.

Fresh worries over Europe’s bailout mechanisms this week hastened fears of another recession and saw stocks suffer their heaviest losses since 2008.

The European Commission President Jose Manuel Barroso appeared to open a rift by calling for further measures to prevent contagion spreading. In response, European leaders have been telephoning each other from their holiday resorts to discuss steps to stem flagging investor confidence.

The ECB is also set to examine the issue on Sunday after Italy announced it would bring forward austerity measures. Similar action has been met by widespread strikes across Europe. Greek taxi drivers, meanwhile, have called off their strike against economic reforms which may be of some relief to tourists. But unless a deal is found, the action will resume once the holiday season is over.