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

El inexplicable Villar

CSD y Liga esperan que el presidente de la federación aparque las diferencias que les separan y participe desde la reunión de mañana en el plan antiultras del fútbol español

Rescatada del fango de un arroyo una enferma de alzhéimer

EP

La mujer, vecina de Oleiros de 85 años, se desorientó y permaneció caída en el lugar desde la tarde del viernes hasta la madrugada

El alcalde de Rairiz de Veiga irá a juicio por prevaricación en marzo

EP

El caso fue archivado y reabierto dos veces El fiscal pide el sobreseimiento y la acusación particular reclama la inhabilitación del regidor popular durante 10 años

La Lotería apuesta por el folclore

Miguel Córdoba, autor de ‘Anatomía del juego’, analiza la superstición entorno al sorteo

LATIN AMERICA

US and Cuba to start talks to normalize relations

Announcement from White House comes after news that US contractor Alan Gross has been freed by Havana

“Isolation has not worked,” says Obama in TV address

US and Cuban presidents take to airwaves to make simultaneous statements on the way forward for relations

Colombia’s FARC guerrillas declare unilateral and indefinite ceasefire

Government must decide whether to do the same or risk ending truce

Lo más visto en...

» Top 50

Webs de PRISA

cerrar ventana