Debt crisis: EU Leaders Set To Announce €750bn Spain And Italy Bailout Deal !
- More debts are still being piled upon existing debts. Bailout is a misnomer. Bailouts are really more debts. Eventually, the Illuminist banksters will own everything. You cannot solve a debt problem with more debts (bailouts)!
Debt crisis: EU leaders set to announce €750bn Spain and Italy bailout deal !
By Robert Winnett, Political Editor in Los Cabos, Mexico
European leaders are poised to announce a 750 billion euro deal to bailout beleaguered Spain and Italy by buying the countries’ debts.
Pan-European Government funds are set to be used to buy Spanish and Italian bonds, which have recently hit record highs – in a move which will send a strong signal to financial markets that the German administration is prepared to back its weaker economic neighbours.
Angela Merkel and other European leaders have come under intense pressure at this week’s G20 summit to take radical action to stem the growing euro crisis which has pushed up the cost of Spanish bonds to unsustainable levels. Francois Hollande, the French President, said: “It will be more on mechanisms that allow us to fight speculation”.
The French president said rates paid by Spain and Italy to borrow on debt markets were “unacceptable”. “We must show a much faster capacity for action,” Mr Hollande said.
Under the proposed deal, two European rescue funds – the 500 billion-euro European Stability Mechanism (ESM) and the 250-billion euro European Financial Stability Facility (EFSF) – will be able to buy bonds issued by beleaguered European countries.
Previously, money in these funds – which has been provided by members of the single currency – has been used to bailout smaller European countries such as Greece, Portugal and Ireland. Governments in these countries are offered money direct in return for agreeing to austerity programmes.
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