Sunday, January 16, 2011

Europe Leans Towards Expanding Rescue Fund

Wall Street Journal
January 14, 2011

European leaders look increasingly willing to boost a European Union bailout fund, as the bloc's finance ministers prepare for a regular meeting in Brussels next week.

European Commissioner Michel Barnier Friday said the European Union has decided in principle to boost the support mechanism for cash-strapped member states and help to support the euro.

"The position of the EU is clear and there has been a decision to boost support mechanisms. The specifics of this will be decided by finance ministers," Mr. Barnier said at a press conference in Athens after meeting with Greek political leaders.

It wasn't clear when EU governments will settle final details such as the volume and scope, but there is an emerging consensus that the euro-zone needs to do more to shore up its defenses against government defaults.

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