Now that the problem of a Greek bailout it temporarily over, the region has turned its attention to the size of bailout funds available for a future crisis. The IMF says the value of all bailout facilities must be close to $2 trillion, if the capital markets are to be assured that no other nation in the eurozone will default. The deepest concerns about about Portugal and Spain.
If a funding instrument is to reach nearly $2 trillion, the size of the European Stability Mechanism (ESM) would need to be well in excess of $1 trillion, contributed mostly by nations within the region. The IMF capacity of rescue would have to be nearly as large. G 20 nations have said they will not put money into the IMF unless Europe builds its own fund first. The process has cause a sort of Mexican stand-off
One prime minister of a eurozone nation is optimistic that funds will be raised
Italian Prime Minister Mario Monti expects a “firewall” to be in place as early as next month.
“Size matters,” said Monti in an interview yesterday at the prime minister’s 16th-century residence in central Rome. “If the approach to firewalls is constructive enough in Europe, I believe we will all be in a better position to face any further contagion effect or any resurgence of the crisis.”
Take This Retirement Quiz To Get Matched With An Advisor Now (Sponsored)
Are you ready for retirement? Planning for retirement can be overwhelming, that’s why it could be a good idea to speak to a fiduciary financial advisor about your goals today.
Start by taking this retirement quiz right here from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes. Smart Asset is now matching over 50,000 people a month.
Click here now to get started.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
