Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Economy
In reply to the discussion: Weekend Economists Out on an Idle Idol Idyll November 15-17, 2013 [View all]xchrom
(108,903 posts)51. Euro Crisis Reprieve: End to Bailout Programs Signals Recovery
http://www.spiegel.de/international/europe/end-of-bailout-programs-in-spain-and-ireland-signals-euro-crisis-recovery-a-933650.html
The summer of 2012 was horrific for Europe. The euro zone seemed on the verge of collapse, investors were reluctant to lend money to debt-burdened countries and interest on Spanish and Italian bonds breached the psychologically critical 7-percent mark. A 100-billion ($135-billion) emergency loan package to Spanish banks hardly calmed the tension. And things looked even worse for Greece, which seemed incapable of fulfilling the demands of its creditors. German Economy Minister Philipp Rösler voiced the idea throwing Greece out of the euro zone, but not even Germany was immune to the chaos after Moody's threatened to downgrade the country's top credit rating because of a potential spill-over effect.
That was all about 16 months ago, and the euro zone now appears to be in much better health. Finance ministers from the 17 countries that use the common currency met in Brussels on Thursday to discuss releasing Ireland and Spain from their respective bailouts.
Irish Prime Minister Enda Kenny had announced before the meeting that his country would begin raising its own money and financing itself again by late January or early February. It even passed on a just-in-case emergency credit line offered by European partners. In 2010 Ireland had accepted a 67.5-billion line of emergency credit from the European Union and International Monetary Fund after interest rates on the open market became unsustainable.
Spain, too, is expecting an end to its bailout program, which was given straight to struggling banks rather than the government. Ultimately the country's banking sector needed only 40 billion of the 100 billion offered.
The summer of 2012 was horrific for Europe. The euro zone seemed on the verge of collapse, investors were reluctant to lend money to debt-burdened countries and interest on Spanish and Italian bonds breached the psychologically critical 7-percent mark. A 100-billion ($135-billion) emergency loan package to Spanish banks hardly calmed the tension. And things looked even worse for Greece, which seemed incapable of fulfilling the demands of its creditors. German Economy Minister Philipp Rösler voiced the idea throwing Greece out of the euro zone, but not even Germany was immune to the chaos after Moody's threatened to downgrade the country's top credit rating because of a potential spill-over effect.
That was all about 16 months ago, and the euro zone now appears to be in much better health. Finance ministers from the 17 countries that use the common currency met in Brussels on Thursday to discuss releasing Ireland and Spain from their respective bailouts.
Irish Prime Minister Enda Kenny had announced before the meeting that his country would begin raising its own money and financing itself again by late January or early February. It even passed on a just-in-case emergency credit line offered by European partners. In 2010 Ireland had accepted a 67.5-billion line of emergency credit from the European Union and International Monetary Fund after interest rates on the open market became unsustainable.
Spain, too, is expecting an end to its bailout program, which was given straight to struggling banks rather than the government. Ultimately the country's banking sector needed only 40 billion of the 100 billion offered.
Edit history
Please sign in to view edit histories.
66 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
Trans-Pacific Partnership: "We Will Not Obey"; Building a Global Resistance Movement
Demeter
Nov 2013
#3
and people wonder why i stay single -- i complain constantly about my dirty dishes taking
xchrom
Nov 2013
#31
Debt collectors face new rules under proposal from Consumer Financial Protection Bureau
Demeter
Nov 2013
#5
5 states where homeowners lost the most money / Home values plummeted by $100,000 in many areas
Demeter
Nov 2013
#6
The Chinese Government Looks Like It's Reining Back Its Intense Control Over IPOs
xchrom
Nov 2013
#17
JIM O'NEILL: We Shouldn't Keep Telling The Emerging Markets To Do Things 'Our Way'
xchrom
Nov 2013
#20
Bloomberg Reporter Suspended Over China Leak, And Now A Round Of Layoffs Might Be Coming
xchrom
Nov 2013
#53