UPDATE 1-Germany’s Merkel: situation in Europe is serious

* Says spreads show several countries affected

* Says euro zone will make joint effort to ward off threats

BERLIN, May 8 (BestGrowthStock) – Europe faces a serious situation
with Greece not the only country subject to financial market
pressures, German Chancellor Angela Merkel said on Saturday.

“It is a serious situation,” she told reporters in Berlin
after meeting Canadian Prime Minister Stephen Harper.

“If you looked at the spreads from Friday or Thursday, you
see we are facing a development that is not good in several
countries, not just one country,” she added.

Merkel said euro zone leaders made the right decisions on
Friday, when they agreed to have special measures ready before
financial markets open on Monday to prevent financial turmoil in
Greece spreading to other countries such as Spain and Portugal.

The leaders agreed to take measures to accelerate budget
consolidation, to make progress on financial regulation and to
strengthen the governance of the euro area.

“We will undertake a collective effort. That means a joint
instrument to react to speculation or threats to the stability
of the euro area,” Merkel said, without giving any details.

Finance ministers from the 27 European Union member states
will meet in Brussels on Sunday to try to agree a mechanism for
helping EU countries stave off future debt crises, EU sources
said on Friday. [ID:nLDE6462E2]

Merkel added discussions among policymakers from the Group
of 20 powers on exit strategies and future economic and
financial policy should include foreign exchange issues.


(Reporting by Paul Carrel; editing by James Jukwey)

UPDATE 1-Germany’s Merkel: situation in Europe is serious