Sunday, February 28, 2010

Greece Bailout Plan Takes Shape

Germany and France plan to spend as much as 60 billion euros, equivalent to $41 billion, to bailout Greece. The deal should be finalized by Friday. Germany wants to ensure that Greece fully is able to handle their deficit before giving up any leverage. During this whole process, the United States continues to support the European Union.
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2 comments:

  1. Taleb ShkoukaniMarch 1, 2010 at 3:49 PM

    It is encouraging news that nations are continuing to help their neighbors that are in severe financial turmoil. It is interesting though that France would only endorse a rescue that Germany also supported. However, it interests me to know the reasoning behind this conclusion. Europe must not be so harsh on Greece and look long-term rather short sighted. If this bailout fails it may cause other debt-ridden countries to turn against the EU.

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  2. Michael McLeanMarch 2, 2010 at 3:42 PM

    The use of state owned financial institutions might enable the German and French governments to get around regulations that could prohibit governments from owning the debt of other nations. Even if the German and French entities agreed to buy half of a new debt, that still would leave a massive amount for public bond investors to buy.

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