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May 10, 2010
Posted: 1311 GMT

Europe's finance ministers approved in an emergency meeting a "stabilization mechanism" that could provide at least 440 billion euros (US $560 billion) for a crisis aid package aimed at ensuring financial stability across Europe.

Will the EU's crisis fund ensure financial stability across Europe?

On Sunday, the International Monetary Fund approved a 30 billion euro ($38.6 billion) loan for Greece as part of a larger European Union-led effort to help ease the country's economic crisis.

The three-year deal makes about 5.5 billion euros (US $7 billion) immediately available to Greece's battered economy, the IMF said in a statement announcing the loan.

The emergency measure comes just a week after stock markets experienced heavy losses and as large scale protests plagued the Greek capital of Athens.

Financial markets across Europe and Asia surged while the euro strengthened against the dollar Monday, hours after Europe's finance ministers approved the package.

By mid-morning trading, the Paris CAC 40 was up by nearly 7 percent, London's FTSE 100 edged above 5 percent, while the Frankfurt DAX was ahead by 4.67 percent. In Asia, Tokyo's Nikkei index closed up 1.6 percent, while Hong Kong's Hang Seng advanced to 2.54 percent by the close of play.

The euro soared above $1.30 from $1.2755 on Friday.

We want to know what you think.

Do you think the EU resuce package will do enough to help save countries like Greece, Spain and Portugal? Is the rescue package big enough?

Filed under: Business •Quest Means Business


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Artur Meireles   May 10th, 2010 1:27 pm ET

I think what is happening to Greece is a big wake up call not only to the european countries but for all the cpuntries worldwide. Countries will learn/scare from the Greek crisis and will do their best not to follow the same path. The rescue package is just a "facade" to the world so the Euro doesnt get even weaker. Pure marketing.

David, Albany NY   May 10th, 2010 1:51 pm ET

Fixing debt problems by extending more credit? This is just the out-of-the-box thinking we have needed to get us out of this mess! We are so lucky to have governments who are willing to boldly take on free market principles for the good of the common man. Good job.

Gregory K   May 10th, 2010 3:29 pm ET

EU – MARKETS 1-0 !

Fantastic run by Barroso from the right hand side , crossing over into the penalty area ( he bend it like Beckam actually) and a brilliant header by Z C Triche into the net.
What a strike !!

Ruth Hirt   May 10th, 2010 6:39 pm ET

Economics aside, bailers have no wiser option in stilling the restive victims, the measure was sure taken up to silence the imminent guilt and finger-pointing when the " rescue " had not been pursued.

The entire scenario is likened to a gambler who tossed half of his much hard-earned living into a lake of crocodiles with all water-frolicking Papandreou cabinet promising the EU to settle Greece economy in three years.

Sorry folks for the pessimism, but there are so many butchers in the range.

JoseyWales   May 10th, 2010 6:55 pm ET

I think a question the media should be asking is: "Where did the EU come up with $1 trillion?" I think one answer might be found in that mystery "glitch" last Thursday that resulted in a 1000 pt drop in the Dow and a mysterious $1 trillion loss in market value.

It's not too conspiratorial to deduce that the world governments realizing they needed to come up with cash qucik would turn to the markets to move wealth from sticks to currencies. What better way to do it than through a mysterious "glitch" attributed to everything from a trader's fat finger to quirky computer trading programs?

It's unfortunate we have a media now which seems to act more as a PR firm for the government than as an independent investigative group focused on bring for truth.

Smith in Oregon   May 10th, 2010 9:23 pm ET

This emergency IMF rescue package is simply fresh meat for the massive powerful organizations and investment firms banking hundreds of Billions on Greece failing to support its debt structure by buying 'short' options, literally banking on Greece to fail.

This transfusion should in theory buy Greece a little more time in intensive care before perishing by the schools of sharks smelling fresh blood in the water.

Alex   May 12th, 2010 2:34 pm ET

Greece is not isolated case, ... there will be more of it... what is next?? Spain? Portugal? Italy? Europe is in big trouble

ana petrov   May 12th, 2010 3:57 pm ET

I would like to formulate your´s question in a different way – do you think the EU rescue package will do enough to help save European Union and euro? It´s the main problem – what they try to save!

Teemac   May 12th, 2010 10:42 pm ET

I would have to agree with Joseywales and Ruth how do these magicians suddenly pull this money out of a hat. If more of our so called news investigators were to publish the truth they would probably disappear like the $1 trillion.

Thot   May 20th, 2010 9:11 pm ET

The austerity plan seems to affect more the ones who win an average salary then those who have big wages. They shouldn’t cut only the public sector salaries or raise taxes, they should cut on the politicians and managers of banks and other institutions who, not only already have big wages, but they have big money prices as well. The balance always falls into the weaker side.

Thot   May 20th, 2010 9:20 pm ET

I already have heard comments saying that the drop of the value of the European coin is a delibered strategy taken by EU. To what I don't get it. To encourage investments into the EU?

Greate post   June 1st, 2010 10:35 am ET

Hi,
I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.
Regards,
Jane

Scratch cards   June 2nd, 2010 6:40 am ET

Hi,
Very cool information. Thanks for this. Keep up the good work.
Regards,
Mical

emmanuel,kaduna,nigeria.   June 9th, 2010 10:35 pm ET

it is not just the financial institutions but the failure of europe to realise that you dont put old wine in new bottles,times has change,we now have emerging economies instead of third world nations,the world is dynamic no one has the final say.i borrow a word of caution from jack welsh "CHANGE OR DIE".let's remember that the dinasors where once here and today all that remains of them is fossils.reinvent that's the best policy.

we have a popular proverb in Africa when 'the rhythm of the changes the dances must also change'.

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