-- The head of the euro area’s financial backstop declared the worst of Europe’s debt crisis over, saying budget-austerity policies are “in place” across the region.
“Europe has taken decisive action to tackle sovereign-debt issues,” Klaus Regling, chief executive officer of the European Financial Stability Facility, told a conference today in Brussels. “The worst of the crisis in Europe is behind us.”
The EFSF would sell bonds backed by 440 billion euros ($613 billion) in national guarantees and use the money it raises to make loans to euro-area countries in need. The entity would sell debt only after an aid request is made by a country.
The EFSF, created for three years, is the main part of a 750 billion-euro aid package that European Union finance ministers hammered out in May to combat the sovereign debt crisis. Another 60 billion euros came from the European Commission -- the EU’s executive arm -- and 250 billion euros from the International Monetary Fund.--
Read more
Comment: Who will win out? The money printers in the US or the austerity freaks in Europe? The bet is on. Economic experiments are intellectually fascinating, indeed, yet often deadly for the common man. This time it won't be different.
No comments:
Post a Comment