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G-20 wants second 2 trillion dollars global Euro-zone rescue package by next April

Monday, February 27th 2012 - 04:47 UTC
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Finance Minister Wolfgang Schaeuble said Germany needs more time and underlines March has 31 days Finance Minister Wolfgang Schaeuble said Germany needs more time and underlines March has 31 days

The world's leading economies worked to line up a deal in April on a second global rescue package worth nearly 2 trillion dollars to stop the Euro-zone sovereign debt crisis from spreading and putting at risk the tentative recovery.

Germany said it would make a decision some time in March on strengthening Europe's bailout fund, a move other Group of 20 countries say is essential to clear the way for throwing extra funds into the International Monetary Fund.

The two actions are part of the G20's efforts to build up massive international resources by the end of April - when the group next meets - and convince financial markets they can stem the euro-zone's deep problems.

It would mark their boldest effort since 2008, when the G20 mustered one trillion dollars to help rescue the world economy.

German Finance Minister Wolfgang Schaeuble said European leaders will tackle the adequacy of the region's firewall during March. The issue will be on the agenda of a European Union summit next week.

”But the month of March goes from March 1 to March 31. It will be reviewed again, also in the light of the developments that have since occurred, whether the stated dimension of the (European bailout) mechanism is enough or not,” he told reporters.

Berlin's willingness to discuss the size of Europe's firewall marks an important shift.

Facing political opposition to a second Greek bailout in its parliament, it has balked at enlarging Europe's rescue fund on the grounds that it would undermine efforts to impose fiscal discipline on indebted countries.

The softening of its stance came as Schaeuble said he assumes the Greek bailout package will win Bundestag support on Monday.

An agreement by Europe to merge its temporary and permanent bailout vehicles would create a 1 trillion dollars war chest and open the door for other G20 countries to meet the IMF request for 500 to 600 billion dollars in new resources, on top of its current 358 billion in funds.

Put together, this would total around 1.95 trillion dollars in firepower

Categories: Economy, Politics, International.

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  • laceja

    This is absolutely the most amazing piece of propaganda I have every read.

    “Put together, this would total around 1.95 trillion dollars in firepower.”

    Firepower?! On top of the $50 trillion or so the US Federal Reserve has printed in the past four years (and they are printing even more as we speak - QE3 is already happening, but not with a name), now the EU will “officially” print another $2 trillion of worthless paper. And, all the while, they promote it as if new wealth is being produced for “the world”. My a$$! This is just more wealth being “printed” for the banksters. Anyone, who believes one syllable of this is really bellying up to the koolaid stand.

    Feb 27th, 2012 - 02:24 pm 0
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