Sunday, February 26, 2012

Euro Zone Decision on Bailout Funds' Size Likely to be Delayed

With Germany still opposed to the bailout, the euro zone leaders may not be able to meet international demands. The euro zone wants to lend more money to the IMF in hopes of repairing the broken European economies but without Germany, the euro zone's biggest economy, they cannot afford to do so.

The European Central Bank supports the increase but Germany is insistent that the current bailout fund is large enough and if it were to increase, nations would try less to work their own way out of debt.

The meeting to be held tomorrow will vote on this and the funds would be given to Greece to expand its financial lifeline.

The US and Canada are both denying requests to participate in the funding so the euro zone is looking at countries like China and Japan. These two nations have stated that the euro zone must move first before they will consider participating.

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