Rough week

Despite offering reassurances that Germany and other members of the eurozone were on the right path to containing the bloc's debt crisis and avoiding an economic recession, German Chancellor Angela Merkel said the effects of the eurozone crisis would be felt well into the future.

"The debts have accumulated over decades, which means the debt crisis won't be dealt with overnight," Merkel said in a weekly video-podcast on her website. "Nearly all large European countries have spent more than they've brought in for years… it will surely take a decade, before things look a little better."

Key to turning around the crisis, however, was strength and solidarity in Europe.

If things aren't going good in Europe, things won't go well in Germany," Merkel said. "That means we have to put all out efforts to getting things sorted out in Europe."

Meeting underway

Merkel's comments come at the end of a week of tumultuous activity surrounding the eurozone debt crisis. Late on Friday night, Greek Prime Minister George Papandreou survived a vote of confidence in parliament.

On Saturday, Papandreou met with Greek President Karolos Papoulias to establish a caretaker government that will attempt to steady the country politically.

"I will do all I can do to form a government of wide consensus," Papandreou told Papoulias at the start of the meeting in front of reporters, adding that divisions in Greek politics would "raise doubts among our European partners about our desire to stay in the eurozone."

It remains unclear if opposition parties would be willing to participate in a caretaker government, possibly opting instead for immediate elections. This comes as Greece is in negotiations with its eurozone partners and the International Monetary Fund (IMF) about a second 130 billion euro ($179 billion) bailout, which would come with cancellation of some debt from banks.

Dominating the agenda

Friday also marked the end of a G20 summit in the French city of Cannes, where the eurozone crisis and Greek political upheaval in the midst of its debt problems dominated the agenda.

There, Merkel and her French counterpart, President Nicolas Sarkozy, were able to convince Papandreou to drop the idea of putting Greece's latest rescue package on the ballot as a referendum.

The problems facing Greece and the eurozone overshadowed other issues that were meant to be taken up in Cannes, but some progress was made.

Italy, under fire that its own debt problems could spiral out of control, agreed to have its progress toward economic reformed be monitored by the IMF.

Author: Matt Zuvela (Reuters, AFP, AP)
Editor: Andreas Illmer