EURO CRISIS

EU announces a 130-billion growth package to counter austerity impact

Spain, Italy, France and Germany agree to take a stimulus plan to next week’s summit

In a first sign that the era of austerity as the sole prescription for the euro zone’s ills is coming to an end, the leaders of Spain, Italy, France and Germany gathered in Rome on Friday to announce that one percent of EU gross domestic product (GDP), or around 130 billion euros, will be earmarked for a stimulus package.

“The goal is to relaunch growth and create jobs,” Italian prime Minister Mario Monti said. Spain’s prime minister, Mariano Rajoy, underscored the common will for “more Europe, for a banking, economic, fiscal and political union” given that the euro is an “irreversible” project.

Market pressure on Spain and Italy’s sovereign debt has eased up in recent days due to expectations that European leaders will adopt stabilizing measures at a crucial summit next week. But analysts warn that if a credible deal is not produced, the risk premiums of both Mediterranean countries will quickly shoot up again beyond sustainable levels.

The agenda for Friday’s meeting included talks on how to advance towards a fiscal and banking union, and it may also have defined remaining questions regarding the EU rescue package for Spain’s banking sector.

Rajoy said he felt “enormously happy” on leaving the meeting in a former Medici palace after hearing, in French President François Hollande’s words, that EU leaders would “use all the mechanisms necessary to guarantee the euro zone’s stability.” However, Chancellor Angela Merkel underlined German opposition to Spanish banks receiving loans directly from the EU rescue mechanism. “There has to be a guarantor and the guarantor is the Spanish state [which can] tell its banks what they must change,” she said.

Para poder comentar debes estar registrado en Eskup y haber iniciado sesión

Darse de alta ¿Por qué darse de alta?

Otras noticias

Avatar
Corresponsal diplomático y de Defensa de EL PAÍS

Últimas noticias

Ver todo el día

Las víctimas de Spanair vuelven al juzgado por sus indemnizaciones

Los demandantes rechazan la aplicación de los baremos de los accidentes de tráfico. El grupo de familias pide 43 millones de euros a la aseguradora, que ofrece 4,7 millones

Sacyr vende activos inmobiliarios a la Sareb por 409 millones

EP

La operación afecta a suelos y obras de la filial Vallehermoso

Lección magistral desde Qatar

Dos grandes maestros; uno, de élite; el otro, de nivel bajo El primero muestra la diferencia con brillantez

El Salvador, culpable de hacer desaparecer a niños en la guerra

La Corte Interamericana de Derechos Humanos dicta que hubo un patrón sistemático de desapariciones forzadas dese el Estado

LATIN AMERICA

Venezuelan opposition leader faceing plot charges

María Corina Machado is accused of trying to eliminate President Nicolás Maduro to pave the way for a coup

Kirchner supporters attack judge investigating president’s hotel firm

Argentinean state imposes $350 fine on company for irregularities

Moral light of Mexico’s left walks out on party he founded

Jan Martínez Ahrens Mexico City

Cuauhtémoc Cárdenas disagrees with current leaders of the PRD

President Peña Nieto’s reforms fail to loosen Mexico’s credit market

Only one in four small and midsize companies receives financing

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana