Europe’s “big bazooka” bail-out fund is not ready and won’t stem the debt crisis that on Tuesday pounded Italy and the European Central Bank (ECB), admitted Wolfgang Schauble, Germany’s finance minister.
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 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, acknowledged the €440bn (£376bn) fund would not win support to leverage it up to €1 trillion. Its capacity would be between €500bn and €700bn instead – a total that is unlikely to be big enough to rescue Spain and Italy.
Eurozone finance ministers also agreed to explore ways of boosting the IMF’s resources through bilateral loans so that the international lender can match the leveraged capabilities of the eurozone’s bailout fund.
However, the ministers 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.”
[More]
See Also:
S&P downgrades British and US banks
EU finance leaders hold desperate talks to save the euro as Italy teeters on the brink
Euro Finance Ministers Discuss Radical Ideas to Avert Global Crisis
Europe ramps up rescue fund, may turn to IMF
Afternoon Updates:
12:07 pm EST, November 30th, 2011 — The High Price of Abandoning the Euro
12:10 pm EST, November 30th, 2011 — ‘Germany As Isolated on Euro as US Was On Iraq’
12:13 pm EST, November 30th, 2011 — German Exports Soar above One Trillion Euros
12:16 pm EST, November 30th, 2011 — Blame It on Berlin
SAVED (For Now)!!!
12:17 pm EST, November 30th, 2011 — Central banks shift into high gear to stem crisis
12:19 pm EST, November 30th, 2011 — Opening Bell: Markets buoyant on central banks’ action
12:21 pm EST, November 30th, 2011 — Velshi: Banks’ move a coordinated effort to help Europe buy time
12:24 pm EST, November 30th, 2011 — China cuts bank reserve ratios for first time in three years
12:25 pm EST, November 30th, 2011 — Knowles: Finally, central banks do something — the rescue begins
12:28 pm EST, November 30th, 2011 — Debt crisis: live
3:22 pm EST, November 30th, 2011 — Nigel Farage Was Right!
If I have this correct, today the can just got kicked down the road again. The debt is still there and nothing has been resolved that I can see. However, I am speculating that because world banks are now involved decisions regarding how to fix the mess may be taken out of the hands of EU officials (all very quietly of course to spare them the humiliation) as the “big guys” step in and make the appropriate decisions for them.
What that means for the future of the EU I don’t know.
We’ll see how it plays out in the weeks to come. It should be interesting.
The gathering storm…….
http://www.youtube.com/watch?v=vGQIxYfKKtc
Nigel Farage was right. Bring on the Indendent Party…….Throw the rest either in jail or out onto the street.
http://www.youtube.com/watch?v=Wb-MWoZKYmg&feature=related
Thank you BTDT — this link is far to valuable to leave in a comment. I’ve moved it “mainstream” on the main entry. I urge people to watch it.
Dare I say that Britain does have a leader in the mold of Thatcher?
I think so. They just don’t know it yet.
In my view, UKIP is the true British Conservative Party. Like “Reform” in Canada this party today will one day take power and the sooner the better. Britain has no time to waste and it’s far past time to fire all “Europhiles”. I am certain Nelson would approve.
“Farage” — a modern day “Nelson” — and he provides much to think about as he is ignored by the UK “LSM”, owned and controlled by the EU. Where have I heard that story before?
One final thought (a song).
“Stephen Harper” — the second coming — and many more to follow as Nigel goes “big time”. The EU may control all the major news organizations on the continent but they cannot control the net and that is where the real news is to be found.
I say that because I know “that”. I read it everyday.
My view: It is far past time the EU (the new and improved USSR) is fired. Europe has far better things to spend it’s money on than a bunch of “losers”. Everyone has seen that movie before.
“Time to go.“