Cover

"Greece, Spain, Cyprus: EU plans XXL bailout package", announcesFinancial Times Deutschland. The Hamburg based financial daily reveals that Eurozone leaders are preparing a larger than expected rescue fund to come to the aid of the Eurozone’s "fragile children" to be validated by the end of November at the latest —

Modifications to the Greek bailout and the programme planned for Cyprus, as well as a second Spanish request for aid could all be decided at the same time. The goal of stitching the measures into a single package is to present it as a global solution designed to ensure the success of all of the previous efforts to combat the crisis.

FTD cites a report in the weekly Der Spiegel to the effect that the second Greek aid package, which is set to run until 2014, will be 10 billion euros short, and remarks that austerity is reaching its limits in Portugal.

Subscribe to the Voxeurop newsletter in English

In a further reference to the Spiegel report, Graz based Austrian dailyKleine Zeitungleads with the headline “2,000,000,000,000” and affirms that the European Stability Mechanism (ESM) will be given sufficient financial leverage to raise two trillion euros instead of the 500 billion initially planned. The goal is to ensure that it has the necessary funds to rescue major countries like Italy and Spain —

Modelled on its predecessor the EFSF, the ESM will be equipped with instruments that enable it to limit its coverage to high risk debt. The rest of the funding is to be sourced from private creditors who will face lower levels of risk. However, a lack of private investors meant that this concept did not work for the EFSF.

Was this article useful? If so we are delighted! It is freely available because we believe that the right to free and independent information is essential for democracy. But this right is not guaranteed forever, and independence comes at a cost. We need your support in order to continue publishing independent, multilingual news for all Europeans. Discover our membership offers and their exclusive benefits and become a member of our community now!

Are you a news organisation, a business, an association or a foundation? Check out our bespoke editorial and translation services.

Support independent European journalism

European democracy needs independent media. Join our community!

On the same topic