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Debt crisis: Spain and Italy to be bailed out in £600bn deal

Posted By admin On June 20, 2012 @ 2:42 am In Money Watch | Comments Disabled

Robert Winnett
London Telegraph [1]
June 20, 2012

Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.

It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.

Mrs 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.

The communiqué issued at the end of the G20 summit, which finished in Mexico last night, said that European leaders had agreed to take action to bring down borrowing rates.

Full article here [1]

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URLs in this post:

[1] London Telegraph: http://www.telegraph.co.uk/finance/financialcrisis/9343049/Debt-crisis-Spain-and-Italy-to-be-bailed-out-in-600bn-deal.html

[2] Euro hits four-year low on fears debt crisis will spread: http://www.prisonplanet.com/euro-hits-four-year-low-on-fears-debt-crisis-will-spread.html

[3] Spain, Portugal and Belgium set to follow Ireland into abyss as debt crisis threatens to destroy the euro: http://www.prisonplanet.com/spain-portugal-and-belgium-set-to-follow-ireland-into-abyss-as-debt-crisis-threatens-to-destroy-the-euro.html

[4] Spain: the new crisis in Euroland: http://www.prisonplanet.com/spain-the-new-crisis-in-euroland.html

[5] IMF drawing up £500bn package to save Italy, Spain and the euro: http://www.prisonplanet.com/imf-drawing-up-500bn-package-to-save-italy-spain-and-the-euro.html

[6] Who’s running Europe? Now Obama pressures Spain over cuts after whispers he advised Merkel on saving the euro: http://www.prisonplanet.com/whos-running-europe-now-obama-pressures-spain-over-cuts-after-whispers-he-advised-merkel-on-saving-the-euro.html

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