Wednesday, June 20, 2012

A €750bn Spain And Italy Bailout Deal To Be Announced by EU Leaders

European Union flags outside the European Commission headquarters in Brussels. Photograph: Yves Herman/REUTERS

Debt Crisis: Spain And Italy To Be Bailed Out In £600bn Deal -- The Telegraph

European leaders are poised to announce a £600 billion deal to bail out Spain and Italy, it emerged at the G20 summit on Tuesday night.

Two rescue funds are to be used to buy the debts of the troubled economies, the cost of which have reached record highs in recent weeks.

It is hoped that the move, which represents a substantial shift in policy for Germany’s chancellor, Angela Merkel, will send a strong signal to financial markets that Europe’s biggest economy is finally prepared to back its weaker neighbours.

Read more ....

Update: Debt crisis: EU leaders set to announce €750bn Spain and Italy bailout deal -- The Telegraph

My comment: More good money going after bad .... and this debt will still need to be paid off. My prediction .... this will only buy time .... but the crisis is still there.

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