Merkel Rejects Spain and Italy

Bertrand Langlois, AFP / Getty Images

German Chancellor Angela Merkel on Wednesday dismissed Spanish and Italian calls for aid, saying that instead of providing more cash, the euro zone needed to step up debt reduction and economic reforms. Merkel flew to Paris on Wednesday for an emergency meeting with French President Francois Hollande as leaders from across Europe headed to Brussels on Thursday for a two-day summit to address the mushrooming crisis. “I fear at the summit we will talk too much about all these ideas for joint liability and too little about improved controls and structural measures,” Merkel said. Spanish Prime Minister Mariano Rajoy said he would plead with other leaders to allow the European Central Bank to bailout his country—a measure he said is necessary as the 10-year Spanish bond yields passed the benchmark level of seven percent.