European leaders are again trying to face down doubts they can overcome the eurozone debt crisis, as a growing unease spreads across the continent.
Thousands of protesters took to the streets of Paris and Athens Wednesday, angry over government proposals intended to try to jump-start the French and Greek economies.
In Athens, where government officials and private employers planned to meet, the head of the textile and leather workers union accused them of being “united in deciding the slaughter of workers' rights.”
Greek officials are under pressure to cut about $127 billion from the country's debt — needed to secure an additional $165 billion in bailout funds and prevent a possible default that could disrupt the European economy.
But it is not just protesters who are concerned. In London Wednesday, British Prime Minister David Cameron called the need for a credible solution to the debt crisis “urgent.”
Speaking during a joint news conference with Italian Prime Minister Mario Monti, Mr. Cameron said interest rates in many European countries remain very high, proof that “what has been done is not working well enough.”
The Italian leader also voiced concern, calling for stronger European leadership to deal with the debt crisis.
Worries that the euro debt crisis could spark another global recession is even prompting action at the International Monetary Fund. The IMF Wednesday said it wants to raise an additional $500 billion in the hopes of meeting additional worldwide demand for bailouts in the coming years.
An IMF spokesman said the fund anticipates a need for about $1 trillion in bailout loans in the coming years.
Already, the debt crisis appears to be taking a toll on Europe's largest economy.
Germany cut its growth forecast for 2012 Wednesday – the second reduction in three months.
German Economy Minister Philipp Roesler said there would be a “temporary dent in growth” due to the difficult economic environment but rejected any talk of a recession.
Officials now expect the German economy to grow by seven-tenths of a percent this year. Earlier forecasts had called for the economy to expand by as much as almost 2 percent.
Germany's economy shrank by about a quarter of percent over the last three months of last year.
