12 March 2011

The Brussels Pangloss writes:

All is for the best in this best of all possible worlds? The FT reports:
The heads of the eurozone’s 17 governments came to an unexpected deal on short-term measures to lower borrowing costs of struggling peripheral economies, agreeing to give more financial backing to the bloc’s €440bn rescue fund and lowering the interest rates on Greece’s bail-out loans.

The leaders also backed a plan to buy sovereign bonds of struggling governments when they are initially auctioned, a measure that could allow countries with high borrowing costs to raise cash at much lower yields.

Aye, well. Don't get over-excited. EU Summit deals have a habit of unravelling fairly quickly.

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