European finance ministers urged a prompt decision on ramping up the
International Monetary Fund's crisis-fighting resources, a day after they agreed
to commit more funds to their own so-called firewall. After two days of talks on
efforts to enhance their response to the sovereign-debt crisis, finance
ministers from the 27 member nations of the European Union and central bank
governors said that despite signs of stability and easing tensions in the
financial markets there shouldn't be complacency. Danish economy minister
Margrethe Vestager, who hosted the talks, said on Saturday that it is crucial
that a global agreement is reached on boosting IMF's resources. "It's important
to ensure the IMF has sufficient resources to play its systemic role in the
global economy," Ms. Vestager told a news conference at the end of the talks.
"Yesterday's decision…is very important in this respect. What we are hoping for
is an agreement in Washington." On Friday, euro-zone finance ministers agreed to
expand the currency bloc's capacity for crisis lending to €700 billion ($934
billion) by combining new funds into a permanent rescue mechanism with existing
bailout loans. But funds available for new loans will be capped at €500 billion
after July 2013, when a temporary bailout mechanism will expire. The combined
lending ceiling of €700 billion includes €200 billion in existing loans to
Greece, Portugal and Ireland. Source : WSJ
Access Investments-Building Awareness - European Union-ROMANIA
Monday, April 2, 2012
European finance ministers urged a prompt decision on ramping up the
International Monetary Fund's crisis-fighting resources, a day after they agreed
to commit more funds to their own so-called firewall. After two days of talks on
efforts to enhance their response to the sovereign-debt crisis, finance
ministers from the 27 member nations of the European Union and central bank
governors said that despite signs of stability and easing tensions in the
financial markets there shouldn't be complacency. Danish economy minister
Margrethe Vestager, who hosted the talks, said on Saturday that it is crucial
that a global agreement is reached on boosting IMF's resources. "It's important
to ensure the IMF has sufficient resources to play its systemic role in the
global economy," Ms. Vestager told a news conference at the end of the talks.
"Yesterday's decision…is very important in this respect. What we are hoping for
is an agreement in Washington." On Friday, euro-zone finance ministers agreed to
expand the currency bloc's capacity for crisis lending to €700 billion ($934
billion) by combining new funds into a permanent rescue mechanism with existing
bailout loans. But funds available for new loans will be capped at €500 billion
after July 2013, when a temporary bailout mechanism will expire. The combined
lending ceiling of €700 billion includes €200 billion in existing loans to
Greece, Portugal and Ireland. Source : WSJ
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5 comments:
With the lack lustre Spanish budget proposals this firewall will not be enough to deal with Spain.
The headline for Luis de Guindos (former Lehmans Bros advisor)budget is to create an amnesty for the huge amount of black money swilling around in Spain.
Spain is the Eurozone country with the highest amount of 500 Euro bills circulating within its borders (who on Earth decided it was a good idea to print a note of this value?) but it seems unlikely that this amnesty will solve the deficit problem and avoid the need to raise V.A.T. and the like.
Years of lack-lustre government, a poorly diversified economy unfit to compete on a grand scale in the 21st century, the 110,000,000,000 Euros of public money (hence the public deficit problem)handed over to the banking sector which continues in a moribund state and a combined public and private debt of nearly 400% of G.D.P. suggest that a bailout will soon be inevitable.
I wouldn't be surprised if a majority in germany would answer "yes" to the question "do you wish you'd never heard of the euro?" too. Despite lots of pundits telling them how much they've benefited from it.
But here we all are. The Euro exists, flaws and all. And I don't think there's a majority for returning to a national currency in any country.
Not yet maybe, but I don't think a firewall large enough can be constructed to keep the eurozone from collapsing. And at rate we are "throwing sandbags on the collapsing dike" -- a phrase I like better than firewall, since it more closely resembles the real picture of what is happening -- it won't be long before we are all drowning in a sea of debt.
Although reforms are definitely necessary to reform the economies of greece and spain to become more conbattant against the coming up markets of the BRICS countries, the whole idea of a solid eurozone is hilarious. The countries of the south will never get out of debt through tough austerity programs cause it will destroy the basis for a recovery demanded by markets. The markets punish recessions by higher bond prices. The "clever" move by creating a shield through ESFS and ESM are nothing but pyramid schemes with dreadfull concequences if it fails. The ongoing austerity measures in the south will undermine recovery and feed a growing anti EU establishment feeling which in turn will continue to push bond prices higher. Installing teknocrat banking temporary governments erodes democracy even further.
Portugal's recession got deeper, spain is not on the way of a solid recovery, a generation of unemployed is on the rise. The price of a common currency is way too high. People will sooner or later make up a reasonable balance and see through the catch 22. Or pay forever in the debt union.
In company news, it's been a long battle but the London Stock Exchange has announced this morning that it has finally won control of clearing house LSE.Clearnet. Private equity group CVC Capital Partners has confirmed it will not make an offer for Misys. The decision leaves Vista the last of the three suitors for the tech group. Healthcare Locums has announced full year results with revenue up from £154.9m to £227.1m. The struggling recruitment firm continues to make a loss. Falklands Islands oil group Desire Petroleum has announced full year results including a loss of $42.5m.
Finally, there will be no changes on the outside, but deep within the FSA's Canary Wharf headquarters things are stirring. From today the City watchdog will start to operate internally under its "twin peaks" structure of the Prudential Regulation Authority and Financial Conduct Authority. The formal split is due to happen next year.
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