Europe gropes for crisis fix, bond buys pushed |
| The Associated Press - Jun 20, 2012 |
Europe's leaders are grasping for ideas to halt their government debt crisis ahead of a series of top-level meetings over the next 10 days. The latest: Using their emergency bailout funds to buy up government bonds on the open market.
The last two and a half years of Europe's government debt crisis have seen Greece, Ireland and Portugal seek multibillion-euro bailouts after high borrowing costs made it impossible for them to finance their debts on the international bond markets. Now markets-watchers fear Spain and Italy may soon be joining the bailout club as their borrowing costs spiral ever higher.
The leaders of the 17 countries that use the euro have been under global pressure to find a substantial solution to the debt crisis rather than piecemeal measures that provide only temporary relief. At this week's G20 summit of world economic powers in Los Cabos, Mexico, politicians including U.S. President Barack Obama called on Europe to find a solution to the debt crisis. Late last year, U.K. Prime Minister David Cameron urged euro area governments to use a "big bazooka" on the problem.
One more solution emerged late Tuesday night on the sidelines of the G20 summit. Italy's Prime Minister Mario Monti urged looking at using Europe's €500 billion ($635 billion) emergency bailout funds — the European Financial Stability Facility and the European Stability Mechanism — to buy government bonds on the open market.
Read Full Article from The Associated Press
- Posted: 2012-06-20 12:25:18
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