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

LATIN AMERICA

China and Cuba sign 29 cooperation agreements

Maye Primera Miami

Castro is working to attract foreign investment to jumpstart Cuban economy

Mexico ends 76-year-old state oil and gas monopoly

Opposition PRD threatens to use legal tools to force repeal of reform package that allows private and foreign investment

Ecuador takes on debt in order to grow

Country’s deficit exceeded $5 billion last year, five times more than in 2012

Venezuela’s ruling party chooses delegates to influential congress

Maduro seeking support for economic reform and crackdown on dissidence

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana