[lbo-talk] EU gets serious

Doug Henwood dhenwood at panix.com
Sun May 9 18:47:25 PDT 2010


[an FT breaking news alert - finally some serious money after a lot of dicking around]

EU and IMF agree €720bn boost for rescue plan

The European Union and the International Monetary Fund early Monday morning agreed an emergency funding facility worth as much as €720bn (£625bn) in loan guarantees and credits to stabilise the eurozone before financial markets opened.

As part of a massive EU plan to shock the markets into believing eurozone finances were sound, the European Central Bank was also set to play a big role by buying eurozone government debt.

Olli Rehn, European commissioner for economic and monetary affairs, said that the ECB had “taken a decision to intervene in the secondary market for government securities”.



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