10 May 2010

Financial skulduggery

Well, it looks good and the markets (who seem to have replaced what we used to know as the gnomes of Zurich) seem to like it. The Guardian reports:
European governments early this morning approved a €500bn deal to save the euro after 11 hours of talks that took place against the prospect of the single currency drowning in a tidal wave of debt and default fears, and even a question mark over the whole European Union.
EU finance ministers meeting in Brussels had quickly agreed a modest "stabilisation mechanism" worth €60bn for eurozone countries in trouble.
But early this morning the Spanish finance minister Elena Salgado announced that the ministers had agreed to make a further €440bn available, a proposal suggested by Berlin and Paris, which would also involve the International Monetary Fund and come in return for pledges of swingeing spending cuts from countries needing support.

Do I understand what it means? Not yet, I don't. (For example, where is all the money coming from?) But these EU deals tend to come apart on closer inspection. Let us hope that they've got it right this time.

No comments: