The European Union has cobbled a last ditch, US$960 billion safety net for financially struggling members, hoping to calm fears that the Greek financial crisis will spread to other euro zone countries.
European Union finance ministers worked through the night to come up with a massive financial backstop for other weaker economies in the 16-nation euro zone. They wanted to announce the measure before financial markets opened for business this week.
The package includes about US$75 billion of loans available from the European Commission, the EU's executive arm, to troubled countries; almost US$570 billion more backing through bilateral loans and US$315 billion from the International Monetary Fund. It follows a worldwide stock market plunge late last week on fears that the Greek financial crisis might spread to other shaky EU economies, notably those of Spain and Portugal.
At a press conference early on May 10, EU Monetary Affairs Commissioner Olli Rehn recognized the problem posed for the nations sharing the euro currency.
"This has clearly been a systemic challenge for financial stability in the euro area," said Rehn. "It is not an attack on one or another individual member state; it is a threat to financial stability of the euro area and the European Union," he said
The package includes about US$75 billion of loans available from the European Commission, the EU's executive arm, to troubled countries; almost US$570 billion more backing through bilateral loans and US$315 billion from the International Monetary Fund. It follows a worldwide stock market plunge late last week on fears that the Greek financial crisis might spread to other shaky EU economies, notably those of Spain and Portugal.
At a press conference early on May 10, EU Monetary Affairs Commissioner Olli Rehn recognized the problem posed for the nations sharing the euro currency.
"This has clearly been a systemic challenge for financial stability in the euro area," said Rehn. "It is not an attack on one or another individual member state; it is a threat to financial stability of the euro area and the European Union," he said
VOVNews/VOANews
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