Categories for European Union

International student migration to the UK Essay

International student migration to the UK Essay

Since the policy of UK’s government on immigration dramatically changed in 1997, a positive immigration policy was carried out by the UK government, especially towards temporary skilled immigration (Stam.A, 2006). Thus students migration increasingly became representative of this kind of migration. This students migration trend brings various effects to the UK student immigration pattern as well as the entire UK. Therefore, this essay aims to demonstrate the effect of students migration in China and European country, particularly, analyze the major cause of students migration , then compare the different causes in these two typical examples and evaluate the differences in my perspective.

The similar significant effect of students migration in China and European country to the UK is the increasing number of students. According to the report from European Union (EU) after 2004, the A8 countries (from Eastern Europe who joined the EU in the largest single expansion since its creation in 1957) had a great number of increasing students inflow of A8 students to the UK annually (see figure 1).

In the academic year of 2008/09 there were approximately 17,000 Higher education students who were domiciled in A8 countries. From this data, it is clear draws the conclusion that the annual students migration at A8 countries were increased.

Over the long term, the effects of this immigration pause on the size of European community of education more small. In addition, Non-European country still send large students to the UK. Based on the statistics from UK Higher Education Statistics Agency, during the period of 1995 and 2003, overseas students increase in number from 206,000 to just over 300,000. It claims that overseas students represented over 13% of the entire UK Higher Education student population. (Higher Education Statistics Agency, 2005). In part of Non-European countries’ student migration, the largest contribution comes from Asia (see figure 2).

Figure 1 A8 student numbers in Higher Education institutions in England and Wales, 2001/02 – 2008/09 (Source: Higher Education Statistics Agency, 2010)

Figure 2 Nationality of foreign students entering the UK, 2004-2010 ( Source :Home Office, Control of Immigration :Statistics UK, 2010)

However, in terms of the situation in China, the major effect of students migration is not only the increased number of students, but also the financial contribution to the UK government and some negative social effect. According to the survey during 2003-2004, the 43,000 international students from China contributed at least 300 million pounds and increased more 30% than the previous year. Furthermore, this trend still gives rise to the social issues. For instance, some wealthier students might has showed off their high level of consumption which may attract the increased robbery and bring the threat to their safety and even undoubtedly arise the crime rate in local community (Wei .S, 2005). From this case of Chinese students migration, it claims that the effects of student migration have both positive and negative sides.

In spite of the effects that European country and China caused, the major reason which causes these effects should be pay more attention to analyze. Just as Mr. Willetts spoken at conference of University UK, “Without international students, we could not be only poorer economically-we could also be more boring, more insular, and more ignorant of wider world.”(BBC News, 2012). On the one hand, economy drive more Chinese students migration to the UK. After the opening-up Chinese economy reforms since 1970s, many Chinese migrants are chasing the better economic development and have significant migration inflows from China.

So students migration becomes the main trend to meet requirements as a consequence of rapid development of economy requires more educated talent in work force. Thus,a great number of parents pull and push their children to study in the UK in order to acquire level of English, study at higher academic reputational university. In contrast, the cause in European country is different. The citizens from A8 country in European started to be implement the fewer restriction on their right entering the UK (Gillingham.E, 2010) and it has reflected on the area of students migration. Specifically, as a result of the more simple process of entering the UK, students are highly attractive source of skilled migration without an excess of limitations.

Other causes of difference between China and European country involve issue of visa policy. Overview the Non-European country, the major cause of increase students migration is that student visas are not permanent, and they do not need provide a direct legal route to settlement. On the basic data of entering in the UK, 79% not stayed as British residents and another 6% remained as students who not tend to lead settlement (Achato et al.2010). There extension of visa statement can state that application of Tire 4 Student visas are rising up during the period of year from 2001 to 2010 (see figure 3). China is the largest group of students migration to the UK in Non-European country, so there is no doubt that the visa extension in Non-European country also reflects the same situation in China.

Moreover, implementing entry procedures in flexible, provide available service lets students gain work experiences in the UK. This also a effective strategy to keep international intellectual stay in the UK (Wei Shen, 2005). In comparison, students who from European country have fewer limitation about visa. For example, the UK council for International Student Affairs clams that if a student from European Economic Area (EEA), the student could be entitled to the UK freely for up to three months without any demonstration about the right of free movement and do not have to register or apply for any documents in order to stay in the UK.(UKCISA)

figure 3 Extension of visas, non-EEA students,2001-10 (Source :Home Office, Control of Immigration: Statistics UK, 2009)

To summarize, according to the analysis of these two examples, it is not difficult to state all these students migration have similar effects but different causes of migration pattern. Although excessive student migration can cause some social issues, the similar effect of the increasing number of students immigration to the UK still exist in China and European country as the major impact of students migration. However, the different causes of this migration trend contribute as much as their similar effect.

In China, students migration to other nation is to fulfill the developing country’s demand of skilled people to facilitate economy. I believe this cause could attract more students study abroad and so that streamling service of visas application to provide more convenience to students migration. While in European country, there are fewer restriction of visa policy and right entering to the UK than China. This can make the policy about students migration in European country change more to promote the development of it. Therefore, I argue that different causes about students migration in China and European country still cause similar result, and it will be profound to migration pattern in the future.

List of References
Achato, et al. (2010) The Migration Journey. Home Office Research Report 43.London: Home Office

BBC News.(2012,September 13).Overseas students: Change to UK migration figures planned. Available at: http://www.bbc.co.uk/news/education-19579923

Blinder,S.(2011,December). Non-European Student Migration to the UK, The migration observatory, 1st Revision (Next update:12/12/2012). Available at: http://migrationobservatory.ox.ac.uk/briefings/non-european-student-migration-uk

Findlay,A.M.and Stam,A.(2006, March 16).International student migration to the UK:Training for the global economy or simply another form of Global talent recruitment? Institute for the Study of International Migration. Available at: http://www12.georgetown.edu/sfs/isim/Event%20Documents/Sloan%20Global%20Competition%20Meeting/Findlay-UK.pdf

Gillingham,E. (2010, November). Understanding A8 migration to the UK since Accession, Office for National Statistics. Available at: www.ons.gov.uk/ons/rel/migration1/migration-statistics-quarterly-report/novem
ber-2010/understanding-a8-migration-to-the-uk-since-accession.pdf

Higher Education Statistics Agency (2005). Students in Higher Education Institutions 2003/4.(also 1994/5-present)

The Higher Education Academy (2007). The internalization of UK Higher Education: a review of selected material. Available at: http://www.heacademy.ac.uk/resources/detail/the_internationalisation_of_uk_he

UK council for International Student Affairs(no date). EEA and Swiss students. Available at: http://www.ukcisa.org.uk/student/eea.php#register

Wei Shen (2005). A study on Chinese student migration, Asia Europe Journal, 3(3). Available at: http://www.springerlink.com/content/q8988416j37t6144/

IGO and NGO Essay

IGO and NGO Essay

“Moraine is a small developing country. Like all nations in the developing world, Moraine needs to develop its economy. The country has a government department which is responsible for developing grassroots entrepreneurs – the Business Assistance Department (BAD). It also has access to funding from The European Union (EU) an IGO and has been offered assistance by the One Business at a Time (OBT), an NGO that focuses on helping local populations start and develop simple, local businesses.

A)What are the priorities for the leaders of: (a) BAD, (b) the EU and (c) OBT for their respective operations in Moraine? Why? The priorities for the leaders are the EU, BAD, and OBT.

At first, it depends on whether the EU cooperates with developing Moraine or not because the EU is the largest organization in the European Area; therefore, the organization has a large amount of funds to support developing nations. So, if the government were able to convince the EU, it would be a big chance to develop the economy.

If the EU supported, BAD needs to play a big role of managing funds from the EU because the funds from the EU must be limited. So, BAD has to assign funds for entrepreneurs. Also, BAD has to decide the standard value and rule to judge entrepreneurs. Finally, OBT has to see through them whether they contribute a developing economy in Moraine or not with the standard value and rules from BAD.

2. List two ways the New Public Management (NPM) could help the Business Assistance Department (BAD) achieve its objectives developing grassroots entrepreneurs and support your ideas.”

New Public Management is a public management method to save waste expenditure and offer more convenient service. NPM has basic policies; the introduction of results-oriented approach and customer market focus. Results-oriented approach is based on the clear standard and evaluates the policy of governmental and administrative department. So, this policy makes them motivate to achieve its objectives developing grassroots entrepreneurs. Also, customer market focus is a policy that NPM pursues the customer satisfaction by regarding companies and citizens as the clients of administrative service. Therefore, NPM greatly support BAD by governmental
and administrative approaches.

Reference:
NEW PUBLIC MANAGEMENT: ORIGINS, DIMENSIONS, AND CRITICAL IMPLICATIONS (2013/07/08) Retrieved from http://www.eolss.net/Sample-Chapters/C14/E1-34-04-01.pdf

Natural Gas Markets in Three Distinct Regions Essay

Natural Gas Markets in Three Distinct Regions Essay

Introduction

As with many other products and commodities participating in a globalized supply chain, the three dominant market places are located in North America, Europe and Asia. This is no different for natural gas. While each region shares similarly a reliance on energy to support the tenets of the modern high-standard of living, all three are highly divergent in terms of demographic, culture, and history; and differ widely in policies concerning finance, monetary regulation, and of course, energy. These qualities and more have shaped generations of market development in terms of policy and practice, and in examining the results of those developments, or today’s key differences between the natural gas markets in Asia, Europe, and North America, differentiations will be made based on the following three criteria: market maturity, the sources of supply, and the dependence on imports.

(McRae and Ruppel, 2011)

Asia – Market Maturity

Asia is the least developed natural gas market but shows the greatest growth potential. China in particular is rapidly modernizing; what was once a largely agrarian country is becoming a collection of burgeoning city-centers with growing energy needs–proof can be found in any of over 100 cities with a population over one million (Perkowski, 2012).

In addition, Chinese government has recently unveiled a policy whereby natural gas is prioritized for the transportation sector in an effort to displace diesel and reign in emissions. (Aishu and Hua, 2012) This suggests China, currently the eighth largest consumer of natural gas, may ascend that list to the top three—situating itself among Russia and the US. Despite China’s position to increase gas consumption, significant barriers exist to natural gas market maturity. Structural and regulatory issues concerning natural gas—including pricing–are addressed ad hoc. (Huang, 2012 p.3058)

Although industrialized Asia largely sets worldwide LNG prices (which are tied to oil-indexed long term contracts), the prices are not binding. China has pursued non-market concessions with India through bilateral agreements (McRae and Ruppel, 2011), and bypassed bidding processes with countries like Angola and Nigeria, who sign agreements without human rights or financial transparency requirements normally required by Western investors. (Mitchell, 2012) Absent any semblance of sound legal framework (let alone continuity of pricing practice), such actions show great unpredictability in China’s trading habits which reduce confidence of potential investors aspiring to enter China’s natural gas industry. These add up to significant barriers to natural gas market maturity.

Asia – Sources of Supply

Asian geography promotes trade by sea and larger economies have logically invested heavily in LNG—more than two-thirds of global LNG is traded in the Asia Pacific region (Mitchell, 2012) where flexibility exists to receive gas shipments from a variety sources. Australia (LNG) and Central Asia (pipeline) have traditionally supplied gas to China, but should global market conditions shift, China is easily able to accept shipments from Canada and the United States, and high-CAPEX projects like the Kitimat LNG terminal in British Colombia are indications that North America may grow in relevance to China’s gas supply chain.

Asia – Dependence on Imports

With limited local conventional gas, industrialized Asia is highly dependent on imported LNG from South East Asia, Australia and the Middle East. (McRae and Ruppel, 2011) However, recent assessments peg China’s recoverable tight-gas reserves at over 1,200TCF. Due to uniquely challenging reservoir lithology, (Faulkner, 2012) China will require assistance from Independent producers as their E&P technology lags by world standard. (Faulkner, 2012) Even with Shell allocating USD1B per year to Chinese shale gas exploration (Hamilton, 2012), it may take a decade until Chinese shale gas flows to market. Therefore, it’s reasonable to expect Asia will continue importing roughly 40% of its gas (roughly half is from in-region) and may become increasingly dependent on supplies from Central Asia (Kazakhstan), the Middle East and Western Africa. (Mitchell, 2012)

Europe – Market Maturity

Europe contains a well-developed natural gas market which is considered open, although the lack of a uniform natural gas financial and legal framework for European Union (EU) nations is an encumbrance to efficient market operation. The complicated patchwork of cross-border pipelines must also comply with multiple and dissimilar legal and regulatory regimes which add complication to construction and operations. (McRae and Ruppel, 2011) The European market relies heavily on long term contracts with price terms based on a mix of competing fuels, and pipeline access is restricted. This policy was crafted by way of reaction to the 1973 Arab Oil Embargo; it’s inherently inapplicable to today’s market and serves as a hindrance to full development of the European spot market. (McRae and Ruppel, 2011)

Europe – Sources of Supply

Europe is at considerable disadvantage in terms of security of natural gas supply—there is access to Russian and Central Asian natural gas, but only through Russian pipeline systems monopolized by Gazprom and Transneft, meaning shipments are highly subject to disruption resulting from infighting between Russia and transit-nation Ukraine. (Mitchell, 2012) While France has been determined to contain a remarkable 180TCF of shale gas, Europe may never see the benefit as France has invested in nuclear to eliminate the need for hydrocarbon exploration, and holds a moratorium on same. Poland is the other European country with significant shale gas; they intend to monetize their resources expeditiously. (McRae and Ruppel, 2011)

Europe – Dependence on Imports

While dependency rates between EU nations varies, the EU imported 54.1% of its gross energy consumption in 2010 (European Commission, 2012), indicating great dependence on seller nations (primarily Russia, Nigeria, Algeria, Qatar and Norway). The EU receives almost 50% of its gas by pipeline, and LNG continues to support the Iberian Peninsula. Diversification of supply is a high priority. (McRae and Ruppel, 2011) One major step to liberalizing markets would be to establish pricing mechanisms not tied to oil.

While potential exists for shale gas development to reduce European imports, stringent EU environmental regulations ensure Europe’s dependence on imports for years ahead. Lengthy disruptions are unlikely as Russia and Algeria have failed to reinvest hydrocarbon revenues for economic growth; they remain highly dependent on steady cash inflows to remain solvent. If a lengthy disruption did happen, Europe generally has powerful North American allies who may use diplomacy, sanctions or hostility to mitigate damage. In the event of conflict, North American surplus LNG export capacity may bolster gas shortfalls in Europe.

North America – Market Maturity

The United States and Canada enjoy the most developed and un-restricted natural gas market in the world. Natural gas infrastructure is highly developed and is the mechanism by which the US was able to consume 22% of the world’s natural gas in 2009. (Mitchell, 2012) Natural gas is produced by private companies with open access to the pipeline network and sold at prices set by the New York Mercantile Exchange (NYMEX) based on principles of supply and demand. Gas in North America trades at the greatest degree of independence to oil compared to other regions, indicating an exceptionally mature natural gas market.

North America – Sources of Supply

By way of the North American Free Trade Agreement, the US receives natural gas supply by pipeline from Canada and Mexico, and LNG shipments from Trinidad. Canada receives shipments of American gas to eastern markets via pipeline. Importation of Canadian hydrocarbons may increase if authorization is granted to build the Keystone XL pipeline from Canada to the Gulf Coast.

North America – Dependence on Imports

North America possesses the reserves and technology to theoretically discontinue natural gas imports. Whether this makes political sense is debatable—doing so would financially impair many supply nations with whom North American countries participate in a variety of global affairs. Canada and the US are particularly well situated to conduct natural gas arbitrage. Environmental concerns have slowed the development of the Keystone XL pipeline. Left unresolved, natural gas may be reallocated for export to Asia.

Conclusions

In the West (US and EU), increased market share for NG will be an adjustment to an already well-functioning energy supply chain. In China, development of a natural gas market will be part of a paradigm shift–acknowledgement that Chinese people are earning and spending more, and expect higher standards of living. While the West currently enjoys relatively convenient pricing on natural gas, China will boost Asia’s competitiveness with Europe for supplies from Russia, West Africa, Iraq and Central Asia. This will cause an eastward shift of the global gas supply chain, (Mitchell, 2012) and may shine a brighter light of scrutiny on Asia’s standards of conduct that might not be in line with a Western sense of decency.

The results of such confrontation on natural gas markets are impossible to predict. One thing we can be sure of is that natural gas as a commodity is more than just a tool by which we power our machines or heat our homes. Natural gas is a gift to the world that if used correctly, can drastically improve the human experience for a great many people. Whether buyer and seller nations can be pragmatic about international trade agreements, use the proceeds to grow internal economies, and establish transparency in the marketplace are the metrics by which we will know if this resource is being put to good use or merely squandered.

REFERENCES

1) Mitchell, J. (Nov 2010) “More for Asia: Rebalancing World Oil and Gas” Chatham House 2) McRae, G. and Ruppel, C. (Jun 2011) “The Future of Natural Gas, An Interdisciplinary MIT Study” Massachusetts Institute of Technology. Available at: http://mitei.mit.edu/publications/reports-studies/future-natural-gas 3) Perkowski, J. (May 2012) “China’sBest kept Secrets: Mianyang and Other Tier 3 Cities” Forbes Magazine. [Online] Available at: http://www.forbes.com/sites/jackperkowski/2012/05/11/chinas-best-kept-secrets-mianyang-and-other-tier-3-cities/ 4) Huang, L. (May 2012) “Development in China’s Natural Gas Industry Regulation” Advanced Materials Research. [Online] Volume 527-527 pp 3058-3061. Available at: http://www.scientific.net/AMR.524-527.3058 5) Faulkner, C. (Sep 2012) “China’s Natural Gas Potential” Business Excellence [Online] 26 September. Available from: http://www.bus-ex.com/article/china%E2%80%99s-natural-gas-potential 6) Aishu, C. and Hua, J. [Ed. Fernandez, C.] (Oct 2012) “China Prioritizes Use of Natural Gas By Vehicles, Ships” Reuters [Online] 31 October. Available from: http://www.reuters.com/article/2012/10/31/china-gas-policy-idUSL3E8LV5DN20121031 7) Hamilton, G. (Aug 2012) “Shell Canada to go ahead with Kitimat LNG projects despite billion-dollar Chinese gas investment” [Online] 21 August. Available from: http://www.vancouversun.com/business/resources/Shell+Canada+ahead+with+Kitimat+projects+despite/7124608/story.html 8) Main Origin of Primary Energy Imports, EU-27, 2002-2010.[Online] European Commission Eurostat. Available from: http://epp.eurostat.ec.europa.eu/statistics_explained/index.php/Energy_production_and_imports

Fixing the debt crisis in Greece Essay

Fixing the debt crisis in Greece Essay

Introduction:

Central Idea: American officials exhorted their European counterparts to use Europe’s own resources to try to solve the crisis.

Preview: Echoing past statements, Sarkozy and Merkel said banks should first raise money from the private sector before seeking state aid or money from the EU bailout fund. “These issues must all be resolved,” Merkel said. “It’s a painful process.” Sarkozy stressed that the leaders are fully aware of their responsibilities, saying they have a “moral, political and economical obligation” to act decisively.

The leaders are also working on how best to leverage the European Financial Stability Facility. The €440 billion fund, which was recently granted the power to intervene in sovereign debt markets and provide loans for governments that need to recapitalize banks, is widely seen as needing additional firepower. “It’s important to boost the emergency fund to protect the euro,” said Merkel. But many EU governments have ruled out backing the fund up with additional loan guarantees.

CANNES, France — President Obama plunged Thursday into the fast-moving European debt crisis, arriving here to exhort European leaders to get their financial house in order.

But while the president hustled from meeting to meeting with world leaders, he was in many ways thrust into the rare position of bystander, as the unfolding drama over whether the Greek government would fall (it did not) and whether Greece would back the comprehensive accord to protect the euro reached last week (it will, at least for now) dominated conversations in the hallways and conference rooms here in this iconic seaside town. The grand Espace Riviera is more accustomed to red-carpet arrivals by movie stars and hangers-on for the Cannes Film Festival; on Thursday it was transformed instead into ground zero for blue-suited bureaucrats grappling with a financial crisis and the global contagion that it threatened. Instead of Angelina Jolie posing before the paparazzi, it was Chancellor Angela Merkel of Germany holding a frozen smile as she greeted Mr. Obama in front of the cameras.

There was little preening before the hundreds of reporters gathered from all over the world; President Nicolas Sarkozy of France quickly swept Mr. Obama into a meeting to discuss how to try to stop the unfolding Greek drama from turning into a tragedy, for global markets at least. Mr. Obama arrived early Thursday morning and, during an initial meeting with Mr. Sarkozy, he called the European financial crisis the most important task for world leaders gathered at the Group of 20 economic summit meeting. For Mr. Obama, the stakes are high. He has called the European financial crisis the largest headwind facing the American economic recovery, and he knows that his own re-election prospects are tied to how well the American economy does.

But at the same time, his leverage is limited. In public, Mr. Obama largely stuck to his administration’s official message that Europe’s leaders must “flesh out details” about the plan they agreed to last week in Brussels to deal with the debt crisis in the 17 European Union countries that use the euro. But American officials, including Treasury Secretary Timothy F. Geithner, were huddled in private with their European counterparts trying to hash out an agreement that, at the very least, would stop the disintegration under way in Greece from spreading toItaly and Spain, a contagion that could further stymie America’s own anemic economic recovery.

American officials exhorted their European counterparts to use Europe’s own resources to try to solve the crisis, instead of seeking bailout help from China. Obama administration officials point to the steps that the United States took to try to address its own financial crisis over the past three years. “Look, we went through this ourselves,” an Obama administration official said on Thursday, speaking on grounds of anonymity because he was not authorized to speak publicly. “They have the capacity to handle this within Europe.” Jay Carney, the White House press secretary, said that the 2008 Wall Street crisis could provide insight on steps Europe should take. He maintained that the United States remains influential in advising its allies on how to deal with the problem, even if the United States is in no position to provide financial support. “The United States, obviously, has a great deal of influence, because of who we are and the role we play in the global economy, and globally in general,” Mr. Carney said in a news briefing on Wednesday. “I would not discount the significance of the experience that we have in terms of its usefulness to the Europeans.”

The Obama administration is not eager to see an increase in the resources sent by the International Monetary Fund to Europe; that might further mute American influence as the additional resources would most likely not come from the United States, but rather from Asia — and most likely China. “The I.M.F. has a substantial amount of resources to deal with a range of challenges in Europe and around the world,” said Benjamin Rhodes, the deputy national security adviser for strategic communications. Michael Froman, the deputy national security adviser for international economic affairs, said the turmoil in Greece and uncertainty over how exactly Europe plans to carry out its accord to cut Greece’s debt and shore up its finances “underscores the need to move rapidly toward the full elaboration and implementation of the plan.” Specifically, Mr. Froman said that the United States wants to make sure that Europe has “a firewall that is sufficiently robust and effective ensuring the crisis does not spread from one country to another.”

Mr. Froman said the United States was also trying to make sure that attention was also paid to stimulating economic growth, both in Greece and throughout the euro zone. Part of the anger among Greek citizens has stemmed from a belief that the euro agreement focuses more on Greek austerity and repaying the banks than on growth, a balance that many people fear could lead to higher unemployment rates as the Greek government cuts public sector jobs to pay its creditors and stabilize its finances. “I think right now the highest priority in Greece is stabilizing the situation,” Mr. Froman said. “But the program that Greece has is also about reforming its system and engaging in structural reforms, so that it could become more competitive and therefore grow as part of the euro area.”

NEW YORK (CNNMoney) — Europe’s top leaders said Sunday that they were getting closer to finalizing a plan to solve Europe’s debt crisis. But with a final agreement not expected before Wednesday, the actual details remained under wraps.

“The technical complexities are significant,” said French President Nicolas Sarkozy, adding that there are large amounts of money involved. The European Council, comprising government heads from all 27 members of the European Union, met Sunday in Brussels to hammer out a plan to boost capital levels for banks, enhance a government-backed rescue fund and provide debt relief for Greece. Speaking alongside German Chancellor Angela Merkel, Sarkozy said in a midday press conference that the leaders had made progress on the “ambitious” and “durable” response to the long-running crisis. “We would not be meeting on Wednesday if we were not really trying this time,” Swedish Prime Minister Fredrik Reinfeldt told CNN. Meanwhile, Merkel noted that EU finance ministers had made progress over the weekend on a solution for capital-starved banks.

In principle, the finance ministers have agreed to funnel about €100 billion into banks to boost capital levels. But Merkel added that strengthening banks without resolving the debt crisis in Greece and supporting other nations with unsustainable debts will not work. Europe’s debt crisis: full coverageEchoing past statements, Sarkozy and Merkel said banks should first raise money from the private sector before seeking state aid or money from the EU bailout fund. “These issues must all be resolved,” Merkel said. “It’s a painful process.”

Sarkozy stressed that the leaders are fully aware of their responsibilities, saying they have a “moral, political and economical obligation” to act decisively. The leaders are also working on how best to leverage the European Financial Stability Facility. The €440 billion fund, which was recently granted the power to intervene in sovereign debt markets and provide loans for governments that need to recapitalize banks, is widely seen as needing additional firepower. “It’s important to boost the emergency fund to protect the euro,” said Merkel. But many EU governments have ruled out backing the fund up with additional loan guarantees.