“We Will Defend the Euro, Whatever it Takes” Says EC President; Neither Speculators nor Goldman Sachs to Blame; What is the EU Really Defending?
by ilene - May 8th, 2010 9:53 pm
"We Will Defend the Euro, Whatever it Takes" Says EC President; Neither Speculators nor Goldman Sachs to Blame; What is the EU Really Defending?
Courtesy of Mish
EU finance ministers are meeting this weekend in a mad race to Defend the Euro, whatever it takes.
On Friday, French President Nicolas Sarkozy Vowed to "Confront Speculators Mercilessly" via Secret Plans he could Reveal.
On Saturday, Sarkozy said "When the markets re-open Monday, we will have in place a mechanism to defend the euro. If you don’t think that’s significant, you haven’t been to many EU summits."
It seems secrets were needed on Friday, but not on Saturday, meaning of course there were no plans on Friday, secret or not.
Stabilization Fund Created – Undisclosed Amount
Bloomberg describes the setup in EU Finance Ministers Race to Ready Euro Fund Before Asia Opens
European Union finance ministers meet today to hammer out the details of an emergency fund to prevent a sovereign debt crisis from shattering confidence in the 11- year-old euro.
Jolted into action by last week’s slide in the currency to the lowest in 14 months and soaring bond yields in Portugal and Spain, leaders of the 16 euro nations agreed to the financial backstop at a May 7 summit. They assigned finance chiefs to get it ready before Asian markets open later today European time.
“We will defend the euro, whatever it takes,” European Commission President Jose Barroso told reporters in the early hours yesterday after the leaders met in Brussels.
European officials declined to disclose the size of the stabilization fund, to be made up of money borrowed by the EU’s central authorities with guarantees by national governments.
“When the markets re-open Monday, we will have in place a mechanism to defend the euro,” French President Nicolas Sarkozy said. “If you don’t think that’s significant, you haven’t been to many EU summits.” Sarkozy cancelled a planned trip to Moscow today to deal with the crisis.
In Brussels, German Chancellor Angela Merkel stepped up German calls for a closer monitoring of government finances and more rigorous enforcement of the deficit-limitation rules, originally drafted by Germany in the 1990s.
Europe will send “a very clear signal against those who want to speculate against the euro,” Merkel said.
Speculators Did Not Cause This Crisis
Speculators are not responsible for unsustainable Greek pension plans. Speculators…