Eurozone leaders establish anti-crisis fund

Eurozone leaders establish anti-crisis fund
# 08 May 2010 13:03 (UTC +04:00)
Baku. Vahab Rzayev – APA-Economics. Leaders of eurozone countries decided to set up an emergency defense plan to prevent Greece’s financial crisis from spreading to other countries and further battering their common currency. The plan aims to protect the euro from aggressive financial speculation. It will be ready by the time markets open on May 10.

Leaders of the 16 countries that use the euro met with the European Central Bank and the European Commission in Brussels to hammer out an antispeculation plan that they hope will prevent traders from putting the euro under the kind of pressure they imposed after the Greek meltdown.

Financial traders have continued to sell off the euro despite the adoption of a 110-billion-euro ($147 billion) rescue loan for Greece, pushing the euro down and threatening to provoke other meltdowns in eurozone countries with low economic growth, such as Portugal, Spain, and Ireland. All 27 European finance ministers will hold emergency talks on May 9 to work out the plan’s details. Beyond immediate measures to protect the euro, leaders also agreed to accelerate budget cuts, tighten EU budget rules, and come up with more biting sanctions for countries that overspend.
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THE OPERATION IS BEING PERFORMED