English | دری

Eurozone agrees to support struggling banks

in International Business

Eurozone agrees to support struggling banks

Eurozone agrees on bank recapitalization by using the Eurozone’s planned bailout fund, without adding to government debt.

The decision will be implemented on 9th of July.

The Eurozone also agreed to set up a joint banking supervisory body for the Eurozone.

Analysts say Germany appears to have given ground after pressure from Spain and Italy to provide more support.

Chancellor Angela Merkel has managed to ensure that Brussels has more control over the finance of Eurozone countries, something she had wanted.

French President Francois Hollande also appeared to back Italy and Spain up.

“I’m here to try to find rapid solutions for those countries facing pressure from the market, despite having made huge efforts to balance their budgets,” the socialist French president said.

    A 10bn-euro boost of capital for the European Investment Bank, expected to raise overall lending capacity by 60bn euros

    Targeting 60bn euros of unused structural funds to help small enterprises and create youth employment

    A pilot launch of EU project bonds worth 4.5bn euros for infrastructure improvements, focusing on energy, transport and broadband.

The plan envisages the creation of a European treasury, which would have powers over national budgets.

Chancellor Merkel warned that there is no “magic formula” to solve the crisis, hence, fiscal responsibility and tighter regulation must come first.



Related Articles

Trump Declares List of 10% Tariffs on $200bn in Chinese Goods

The Trump administration on Tuesday released a list of 10 percent tariffs on $200 billion in Chinese goods, which will

France to present its first budget

French President Francois Hollande is set to present his country’s first budget, which he has said is the “toughest budget”

EU lifts sanctions on a number of Iranian companies

The EU’s General Court in Luxemburg lifted the sanctions imposed on seven Iranian companies by the US, ruling that there

No comments

Write a comment
No Comments Yet! You can be first to comment this post!

Write a Comment

Your e-mail address will not be published.
Required fields are marked*