Mr Schauble said eurozone finance ministers, who are meeting in Brussels, could not agree on the terms of the European Financial Stability Facility (EFSF). He told Germany's Handelsblatt that although Europe desperately needed a fund "capable of action", plans for the EFSF were too "intricate and complex" for investors to understand. The finance ministers, who were meeting ahead of a full Ecofin summit today, admitted the €440bn (£376bn) fund was unlikely to win support to leverage it up to €1trillion. It would be closer to €625bn instead. There was also disagreement about whether the bank recapitalisation programme should be carried out nationally or by Brussels. However, Mr Schauble concurred that the €8bn of international aid to Greece should be disbursed before Athens runs out of cash in two weeks. Evangelos Venizelos, Greece's finance minister, said: "In Greece we have all the necessary conditions in order to go ahead with the next disbursement. It was seen as a small advance amid the worsening crisis. Italy was forced to pay a crippling 7.89pc - the highest level since 1996 - to raise €3.5bn of three-year debt. Meanwhile, the ECB admitted it had failed to attract enough deposits from European banks to balance out the sovereign bonds it has recently bought. As part of its strategy called "sterilisation" the bank said it had asked European banks for €203bn of deposits for a week but had only attracted €193bn. Although small, the €9bn shortfall was a rare failure.Here's what Didier Reynders, Belgian finance minister , said on his way in: ""We will discuss with the ECB. The ECB is an independent institution, so we will put on the table some proposals and after that it is for the ECB to take the decision." Jan Kees de Jager, his Dutch colleague, said that the main bailout find, the EFSF, could only be boosted 2.5 times at most (that is, to around €626bn, rather than the hoped-for €1 tn) and added: ""We will have to look at the IMF, which can also make available additional funds for the emergency fund. I think countries in Europe and outside of Europe should be prepared to give more money to the IMF. Then you have more money but it's still not enough." Greece hopes they will now get their long-delayed "sixth trance" - or €8 bn - after tonight's meeting. The French prime minister François Fillon has dismissed a report in the French newspaper La Tribune that suggested credit ratings agency Standard & Poor's could cut its outlook on France within day. Fillon told Reuters: "I can tell you that La Tribune is reporting nonsense."...The Euro-zone project was just another case of the elites being detached from the majority of the population.....In the UK, the upper tiers of society have no regional identity or loyalty. From an early age, any traces of a regional accent and identity are removed. From this section of society, someone from Cornwall and someone from Manchester, will sound the same and have a similar outlook on life. For the majority of the UK population you can tell where they come from as soon as they start speaking....The elites in Europe, probably have the same outlook on life and to them the Euro-zone made sense. It did make sense in their little world. But, the outlook on life, of the majority in the Mediterranean countries and those of the Northern nations are fundamentally different. Trying to make them the same over a few years is never going to work, no matter what regulations you try and put in place.....I love the way the Italians & the Greeks are told by Merkelozy via their unelected new governments are going to give grief to their populations. Already the Greeks riot! Let's wait until the italians understand what is being planned for them! Come on let the Euro die!!! Better to have the grief which we are told will happen with their local currency BUT at least they are in control of their grief & will better understand! Can't wait for France to lose its AAA!! Who will Merkel have meetings with ? Luxembourg???
Access Investments-Building Awareness - European Union-ROMANIA
Tuesday, November 29, 2011
Mr Schauble said eurozone finance ministers, who are meeting in Brussels, could not agree on the terms of the European Financial Stability Facility (EFSF). He told Germany's Handelsblatt that although Europe desperately needed a fund "capable of action", plans for the EFSF were too "intricate and complex" for investors to understand. The finance ministers, who were meeting ahead of a full Ecofin summit today, admitted the €440bn (£376bn) fund was unlikely to win support to leverage it up to €1trillion. It would be closer to €625bn instead. There was also disagreement about whether the bank recapitalisation programme should be carried out nationally or by Brussels. However, Mr Schauble concurred that the €8bn of international aid to Greece should be disbursed before Athens runs out of cash in two weeks. Evangelos Venizelos, Greece's finance minister, said: "In Greece we have all the necessary conditions in order to go ahead with the next disbursement. It was seen as a small advance amid the worsening crisis. Italy was forced to pay a crippling 7.89pc - the highest level since 1996 - to raise €3.5bn of three-year debt. Meanwhile, the ECB admitted it had failed to attract enough deposits from European banks to balance out the sovereign bonds it has recently bought. As part of its strategy called "sterilisation" the bank said it had asked European banks for €203bn of deposits for a week but had only attracted €193bn. Although small, the €9bn shortfall was a rare failure.Here's what Didier Reynders, Belgian finance minister , said on his way in: ""We will discuss with the ECB. The ECB is an independent institution, so we will put on the table some proposals and after that it is for the ECB to take the decision." Jan Kees de Jager, his Dutch colleague, said that the main bailout find, the EFSF, could only be boosted 2.5 times at most (that is, to around €626bn, rather than the hoped-for €1 tn) and added: ""We will have to look at the IMF, which can also make available additional funds for the emergency fund. I think countries in Europe and outside of Europe should be prepared to give more money to the IMF. Then you have more money but it's still not enough." Greece hopes they will now get their long-delayed "sixth trance" - or €8 bn - after tonight's meeting. The French prime minister François Fillon has dismissed a report in the French newspaper La Tribune that suggested credit ratings agency Standard & Poor's could cut its outlook on France within day. Fillon told Reuters: "I can tell you that La Tribune is reporting nonsense."...The Euro-zone project was just another case of the elites being detached from the majority of the population.....In the UK, the upper tiers of society have no regional identity or loyalty. From an early age, any traces of a regional accent and identity are removed. From this section of society, someone from Cornwall and someone from Manchester, will sound the same and have a similar outlook on life. For the majority of the UK population you can tell where they come from as soon as they start speaking....The elites in Europe, probably have the same outlook on life and to them the Euro-zone made sense. It did make sense in their little world. But, the outlook on life, of the majority in the Mediterranean countries and those of the Northern nations are fundamentally different. Trying to make them the same over a few years is never going to work, no matter what regulations you try and put in place.....I love the way the Italians & the Greeks are told by Merkelozy via their unelected new governments are going to give grief to their populations. Already the Greeks riot! Let's wait until the italians understand what is being planned for them! Come on let the Euro die!!! Better to have the grief which we are told will happen with their local currency BUT at least they are in control of their grief & will better understand! Can't wait for France to lose its AAA!! Who will Merkel have meetings with ? Luxembourg???
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6 comments:
NEIN,NEIN,NEIN!
NEIN to ECB money 'creation'-we are in this mess because of the Greenspan doctrine of cheap credit & loose money.Giving another credit card to debt addicted societies,financial markets and banks is not just moral hazard-it is the end of normal capitalism,this is financial socialism.
NEIN to Eurobonds-once introduced they can't be taken back and the with elections in France & the ClubMed-in the next 2 years,nobody will implement structural reform.Greece continues to muddle through and not privatize.Berlusconi promised and has done nothing.Only because of the interest on bonds were he and his incompetent Government sacked.
NEIN to IMF funding through the ECB or the US,BRICS or UK-this will bring down Britain.We should deal with our problems alone.The EU is the largest economic unit in the world and we have the needed resources.
He told Germany's Handelsblatt that although Europe
desperately needed a fund "capable of action", plans for the EFSF
were too "intricate and complex" for investors to understand."
By God these investors are so stupid! Fancy not understanding something proposed by the EU!!
Schaeble is standing firm, but why not be honest, too? What Europe needs is not another complex and cunning sub-Ponzi leverage plan but honesty, integrity and democracy - ALL in very short supply from the EU.
When all this blows up I look forward to the day that French farmers stop receiving their CAP subsidies which is mostly paid by the UK and German taxpayer and see their reaction.
Bring it on!
These b------s have been screwing the UK taxpayer ever since that fool francofile Edward Heath signed on the dotted line!
Ask Anders Borg to take over. Sweden may not be a Euro-country but he was voted the best European finance minister.
Alternatively, ask Göran Persson to come out of retirement. He solved the Swedish banking crisis of 20 years ago inventively -- and he was a lover of the Euro, though the Swedes voted No in their referendum.
Everyone is in the business of buying time in the increasingly forlorn hope that the eurozone's sovereign debt crisis is arrested, at least for long enough to agree a long-term fix. Anyway, back home the Chancellor succeeded in persuading our financial backers to carry on funding our borrowing, which will be £111bn higher over the next five years as growth rates dwindle.
NEW YORK -(Dow Jones)- Three substantial economic developments announced in quick succession, including efforts to make dollar funding cheaper for European banks, drove buyers into global equity markets and pushed U.S. stocks sharply higher Wednesday shortly after the opening bell.
Central banks around the globe announced a coordinated plan to support the global financial system that has been roiled for months by Europe's debt crisis. The announcement came after China indicated it would loosen monetary policy by lowering the reserve requirement ratio for banks. And a report on the labor market showed private-business hiring rose by 206,000 in November, the largest monthly gain this year.
The Dow Jones Industrial Average surged 322 points, or 2.8%, to 11877. All 30 Dow components rose, led higher by Caterpillar's 5.3% gain. The Standard & Poor's 500-stock index jumped 32 points, or 2.7%, to 1227. Material and energy stocks were the biggest gainers. The technology-oriented Nasdaq Composite gained 69 points, or 2.8%, to 2584.
The major announcement was the coordinated plan by global central banks. The Federal Reserve, the Bank of Canada, the Bank of England, the Bank of Japan, the European Central Bank and the Swiss National Bank agreed to lower the pricing on the existing temporary U.S. dollar liquidity swap arrangements by 0.50 percentage point.
That takes the new rate down to the U.S. dollar overnight index swap, or OIS, rate plus 0.50 percentage point, the Fed said, with the goal of easing strains in global financial markets.
"One of the risks that we saw derailing improving U.S. markets was the funding markets," said Michael Shaoul, chief executive at brokerage firm Oscar Gruss. "Today's move is clearly attempting to address that."
The action comes after Standard & Poor's Ratings Services late Tuesday downgraded more than a dozen large banks, including the six biggest U.S. financial institutions. The credit downgrade will make it more expensive for those banks, including J.P. Morgan Chase and Bank of America, to fund their day-to-day activities in the overnight debt markets.
While the coordinated central bank effort doesn't address the fundamental problems associated with European government debt, it underscores a "sense of urgency" to address the broad issues ailing the global financial system, according to Seth Setrakian, co-head of trading at First New York Securities.
"The Fed and other central banks saw a very scary situation developing. There was a sense of urgency to act, especially after S&P took action last night," Setrakian said. "They're trying to take any action they can before having to rely on the [European Central Bank] or [International Monetary Fund]. They're hoping this stems the panic."
European markets jumped. The Stoxx Europe 600 rose 2.9%, while the German DAX surged 4.3% and the France CAC 40 increased 3.6%.
Gold futures gained 1.6% to $1,745 an ounce, while crude oil futures jumped 1.4% to $101.15. The U.S. dollar fell sharply against the euro and the yen.
The People's Bank of China indicated it was loosening monetary policy after it said the reserve requirement ratio for banks will be lowered by 0.50 percentage point as of Dec. 5 in an effort to boost liquidity. China's central bank had previously raised the reserve requirement ratio six times this year.
Additionally, private-sector jobs in the U.S. rose by 206,000, according to Automatic Data Processing and consultancy Macroeconomic Advisers, which came in well ahead of the 130,000 gain economists were expecting
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