Eurozone Finance Ministers have agreed to increase the capacity of the European Financial Stability Facility bailout fund.
However the E-F-S-F – which currently has resources of 440 billion euro – will not now be elevated to a trillion euro.
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Ecofin ministers meeting in Brussels last night also agreed to allow the fund to guarantee 20-30 percent of potential losses incurred by investors who buy bonds of governments in financial trouble.
Chief Economist with Friends First Jim Power says he’s always believed politicians would sort out the euro’s difficulties – but he’s not so convinced at this stage:
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