U.S. to Bailout European Union
December 2, 2010 3 Comments
Reuters
The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.
“There are a lot of people talking about that. I think the European Commission has talked about that,” said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. “It is up to the Europeans. We will certainly support using the IMF in these circumstances.”
“There are obviously some severe market problems,” said the official, speaking on condition of anonymity. “In May, it was Greece. This is Ireland and Portugal. If there is contagion that’s a huge problem for the global economy.”
The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.
(Another news report, however, raised questions about the true extent of the US commitment. Read more here).
The developments have echoes of the pressure applied by Washington on European capitals last May to create the near $1 trillion EFSF safety net that was last week used to rescue Ireland after its banking crisis spiraled out of control.
The IMF, whose biggest single shareholder is the United States, has committed 250 billion euros to the EFSF.
While reluctant to dictate to Europe how it should address the unfolding debt crisis, the U.S. government is growing concerned about the global fallout of Europe’s predicament.
U.S. Treasurys’ prices fell and the euro strengthened against the dollar on Wednesday after the news that the United States would be prepared to support an enlarged EFSF.
Germany, whose leaders have expressed frustration at the market backlash against their plans to solve the euro zone’s debt problems, does not want to make the stability fund larger.
About Editor
I don’t know if you are agreeing or disagreeing, my spanish is not very good. You must under stand english , which means you must speak it if you read my post, I would appreciate you posting ,if it’s to me, in English because I can’t understand your reply, it doesn’t look good , gringa?. Thanks.
Qué tal! una manera más del dominio de EU sobre los países, o, será que ese era el objetivo final: el dominio de la moneda gringa?
well now we know what happended to that missing 3 trillion we couldn’t find 6 months ago. Why are we the biggest shareholder in the first place?
I would like to see Ireland get back on its feet, young people are leaving there by the thousands, I don’t think bailing them out will help, there is just no work, maybe we should all go to China. Did you know we have no shoe industry here? it all went to china, try getting a pair of shoes with leather soles, impossible except for frye boots. How could we have let that industry go, everyone wears shoes, and we dont’ make any? no wonder we are losing jobs, how many shoemakers went out of business with that one, Personally I dont’ think Globalization wortks, we have had nothing but problems every since we globalized, no one asked me to vote on it.
They are going to try and shove the North American Union down our throats , we would have it right now if Arizona would keep those pesky borders open, no wonder Obama is suing them and he invited south America to sue them as well,which is illegal. Amazing the courts can look at that, South America has standing but we can’t get the Courts to look at anything pertianing to Obamas birth certificate, main answer is we have no standing. I wish Ireland well, we have relatives there, I hope our social security money and medicare money help them out, it sure won’t be helping us out , when we go bust who is going to bail us out? The mimute I saw Hillary there last year talking about jobs and help for Ireland, I knew it was over for them, she is the kiss of death wherever she goes, she’s like the grim reaper.