The European Community and the IMF has a total of 750 billion euros, provided to stabilize the euro. Germany’s share is the largest with 122.8 billion. 750 billion euros! Featuring an unprecedented rescue package to European politics has returned to the leadership over the financial markets. How sustainable is the package to calm the markets remains to be seen in the coming days. Is this gigantic bailout was necessary?
This question is difficult to answer. With the bailout, the EU countries have one of the largest stop signs set against speculators. This amount seems to calm the markets to end the speculation against the euro. Nevertheless, salvation clip states dangerous, because budgetary sins are not punished. Rather, the following applies: in need help the partner of the EU. Properly and it was therefore important that the IMF to get on board. Because only he can impose tough conditions against the debt restructuring States. Hope to make the first austerity measures of the Spanish.After all, the lender should have contributed to the cost of the bailout.
Very worrying is the fact that the ECB is buying government bonds in the deficit countries. The credibility of the central bank is so shaken and why not. It is without consequence for the stability of the euro. In the same time, not only financial markets are wondering if the euro remains stable in the face of high debt, but also the citizens of the member countries. A glance at the history books shows that governments have in the past often are used the inflation as an emergency exit. Insofar as any attack on the independence of the ECB is fatal.
EU at a crossroads
The EU clamped on a single in the history Rettungsschrim. For a 750-strapped member states billionaire bailout fund has been established. Join 440 billion coming in the form of loans and guarantees from the Member States, 60 billion, the European Commission prepared and 250 billion come from the pot of the IMF. Moreover, the ECB started buying government bonds and thus de facto government deficits financed by printing money.