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Bailout fund could top €750 billion, Weber says

The Local · 25 Nov 2010, 14:40

Published: 25 Nov 2010 14:40 GMT+01:00

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The remarks came amid fears that euro zone members Spain and Portugal could soon follow Ireland in requesting help from the fund, which was set up in May by European countries and the International Monetary Fund following Greece’s bailout.

Weber, speaking in Paris on Wednesday evening, said Europe would not allow speculators to undermine the euro.

"If that amount is not enough, we could increase it," Weber said. "An attack on the euro has no chance of succeeding."

The fund, to which European countries are contributing €500 billion and the IMF the other €250 billion, aimed to calm fears among investors about the reliability of struggling euro zone members. Ireland’s request to tap the fund has, however, underscored the possibility of other countries being forced to seek emergency loans.

On Thursday, the head of the fund, Germany’s Klaus Regling, insisted there would be enough money and that there was no way the current debt crisis could sink the euro.

“The safety umbrella would be big enough for everyone," he told daily Bild.

Asked whether there was a danger of the eurozone collapsing, Regling said: “The risk is zero.”

“It is unimaginable that the euro could fail. No country would leave the euro of their own free will - for weak countries, it would be economic suicide and for the strong countries too.”

However he acknowledge that “there is some uncertainty as to whether the crisis could spread to other countries.”

Story continues below…

On Wednesday, Ireland unveiled a €15-billion austerity package required to unlock an international bailout reportedly worth €85 billion, slashing public sector pay and pensions but refusing to raise corporate tax.

Regling said he "in no way" believed the crisis could spread to European heavyweights Italy and France.


The Local (news@thelocal.de)

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Your comments about this article

15:44 November 25, 2010 by William Thirteen
always good to stash away a little pocket change for a rainy day...
18:58 November 25, 2010 by Edmond Schindler
It being that my income comes from retirement through the US Treasury the nearer the Euro gets in value to the Dollar is money in the Bank for me here in Europe.

This situation with the EU and the 'financial crisis' catching up with Germany indirectly through being in bed with their sinking neighbors is catastrophic. Like a tsunami sweeping over all the lands through a wave of Euros flowing from the rich Nations to the poor.

But as the debt of the Irish seems to be greater in reality then they let on it reminds me of how Greece had greater Debt then was first disclosed as well. Is this the case for Spain and Portugal too? Have they been honest with their Partners in the EU as to their true Debt? Time will tell.
00:16 November 26, 2010 by ngwanem
c'mon fellows... the bailout is for rich banks that woefully did bad investments in ireland... the taxpayer's money from other EU members is going to be handed on a golden plate to these guys, who mess with your money and indulge in risky speculations... at the end... you pay them again for all their troubles.. use your common sense and stop being lazy, only be listening to the media tunes of bailouts and austerity packages ( the new buzzword for 2010)
14:27 November 26, 2010 by Aschaffenburgboy
I just don't see how this system is sustainable. We deposit our money in the banks, they banks gamble it away on bad investment, the ECB and the FED print money to pay us back since our savings are secured . The people which invested the money will simply never get it back since it was not insured, but that money did not evaporate, it went somewhere... ever wonder where?

To keep going on, these stupid Banks or investment companies get bailed out by the government with more freshly printed money that has no real value, only to start the bubble all over again. This just does not make any sense.

Money should not be allow to make money, you should not hedge against money, money is not a real asset because it has no back up to it. You lose money it is gone. You take a loan on your $10,000 diamond ring, if you default you can sell the ring and pay the loan back. How the hell can companies be allowed to use money as collateral when is not even theirs in the first place?

I bet that he real value of a dollars is not even ten cents. There is no substance to back it up, only a private bank called the FED that says it is worth a dollar. Bring back the gold standard dammit!
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