After a closely followed voting today the German parliament approved the expansion of the European rescue fund. It is crucial for the final ratification of the EFSF, as all 17 Eurozone members need to back the expansion of the aid first. Finland, one of the most critical towards the reform among Eurozone countries backed it on Wednesday, but some, such as Slovakia still disagree.
523 German MPs were in favor of the bill, 85 were against and 3 abstained from voting. It is a success for Angela Merkel, whose political standing could have been shaken if a rebellion against the EFSF expansion broke out among lawmakers from the ruling coalition.
523 German MPs were in favor of the bill, 85 were against and 3 abstained from voting. It is a success for Angela Merkel, whose political standing could have been shaken if a rebellion against the EFSF expansion broke out among lawmakers from the ruling coalition.
Portugal urges ECB to provide “unlimited intervention”
Portuguese President Anibal Cavaco Silva said today in an interview for the state television that the ECB should be capable of an unlimited intervention in the market to prevent further liquidity problems in the Eurozone. He pointed out that the central bank should continue buying bonds of troubled member countries, such as in the case of Italy or Spain, in order to decrease risk premiums and assure the markets that there is no risk of default in the Eurozone.
Anibal Cavaco Silva believes that the role of the ECB as well as the EFSF should be strengthened and that countries which are beneficiaries of the rescue fund should carry out all the required reforms.
Portuguese President Anibal Cavaco Silva said today in an interview for the state television that the ECB should be capable of an unlimited intervention in the market to prevent further liquidity problems in the Eurozone. He pointed out that the central bank should continue buying bonds of troubled member countries, such as in the case of Italy or Spain, in order to decrease risk premiums and assure the markets that there is no risk of default in the Eurozone.
Anibal Cavaco Silva believes that the role of the ECB as well as the EFSF should be strengthened and that countries which are beneficiaries of the rescue fund should carry out all the required reforms.
Troika returns to Athens today
The European Commission confirmed that the EU, IMF and ECB team of inspectors will head again for Athens to resume talks with the Greek government on Thursday. They will evaluate the progress in implementing reforms and budget cuts, a condition under which Greece is supposed to receive further rescue funds. A spokesman for the EC also announced that in October an additional meeting of Eurozone finance ministers will be held during which they will discuss the country's financial situation and decide whether the next part of the bailout can be finally released.
The European Commission confirmed that the EU, IMF and ECB team of inspectors will head again for Athens to resume talks with the Greek government on Thursday. They will evaluate the progress in implementing reforms and budget cuts, a condition under which Greece is supposed to receive further rescue funds. A spokesman for the EC also announced that in October an additional meeting of Eurozone finance ministers will be held during which they will discuss the country's financial situation and decide whether the next part of the bailout can be finally released.
By
M.Zohaib Gadit
Forex Trading Consultant
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