‘Whatever it takes’ is €500 billion
(11 May 2010 – Europe) In an effort to stop the ever expanding financial crisis in Greece from infiltrating other fragile countries in the European Union, finance ministers have now agreed on a rescue deal of more than €500 billion (A$717 billion).
Finance ministers in the European Union have pledged to do ‘whatever it takes’ to stop a possible second wave of the global financial crisis from engulfing other economies within the EU, as hairline cracks begin to emerge.
In an emergency meeting the members endeavoured to reach an agreement before the opening of the Asian markets yesterday morning and reached a final decision around 10.30 am Australian time.
A total €720 billion is standing by to underwrite the plummeting euro currency which now sits at a 14-month low against the US dollar.
Around €440 billion has been contributed from 16 euro governments; €60 billion from the European Union and a further €220 billion has been added to the stock pile from the International Monetary Fund.
Olli Rehn, monetary affairs commissioner for the EU, said that the issue is no longer only about Greece but about the financial stability over the European Union as a whole.
The finance resistance by the commission and by the member states and the actions taken today by the ECB proves that collectively the euro will be defended and whatever it takes will be done, Mr Rehn added.
Mr Rehn highlighted that the rescue deal would underpin Spain and Portugal, which could follow Greece into crisis.
This is particularly crucial for countries that have been under speculative attacks in recent weeks, Mr Rehn added.
Action needs to be taken now and in this sense the union is satisfied to know that Portugal and Spain have expressed their clear commitment to take significant new measures, Mr Rehn noted.
In an emergency meeting the members endeavoured to reach an agreement before the opening of the Asian markets yesterday morning and reached a final decision around 10.30 am Australian time.
A total €720 billion is standing by to underwrite the plummeting euro currency which now sits at a 14-month low against the US dollar.
Around €440 billion has been contributed from 16 euro governments; €60 billion from the European Union and a further €220 billion has been added to the stock pile from the International Monetary Fund.
Olli Rehn, monetary affairs commissioner for the EU, said that the issue is no longer only about Greece but about the financial stability over the European Union as a whole.
The finance resistance by the commission and by the member states and the actions taken today by the ECB proves that collectively the euro will be defended and whatever it takes will be done, Mr Rehn added.
Mr Rehn highlighted that the rescue deal would underpin Spain and Portugal, which could follow Greece into crisis.
This is particularly crucial for countries that have been under speculative attacks in recent weeks, Mr Rehn added.
Action needs to be taken now and in this sense the union is satisfied to know that Portugal and Spain have expressed their clear commitment to take significant new measures, Mr Rehn noted.
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