Open

Coming up

Don't miss

Replay


LATEST SHOWS

AFRICA NEWS

Search of Air Algerie crash site continues

Read more

MEDIAWATCH

Sarkozy, Hollande and the scooter wars

Read more

MEDIAWATCH

Confusion online over Air Algérie flight

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014 (part 2)

Read more

THE WORLD THIS WEEK

The World This Week - July 25th, 2014

Read more

REPORTERS

Halal tourism on the rise

Read more

ENCORE!

Tunisia's Carthage International Festival turns 50

Read more

FRANCE IN FOCUS

WWI Centenary: the battle for Verdun

Read more

THE BUSINESS INTERVIEW

When big companies want to do good

Read more

  • In pictures: Debris and devastation at Air Algérie Flight AH5017 crash scene

    Read more

  • Kerry heads to Paris for new round of Gaza peace talks

    Read more

  • ‘No survivors’ from Algerian plane crash, says Hollande

    Read more

  • Paris bans new Gaza protest scheduled for Saturday

    Read more

  • Tour de France fans bring the ambience to the Pyrenees

    Read more

  • French families grieve for Algerian plane crash victims

    Read more

  • Protest against Gaza offensive turns deadly in West Bank

    Read more

  • Halal tourism on the rise

    Read more

  • LA Times wipes France off the map in air crash infographic

    Read more

  • Lithuania’s Navardauskas wins 19th stage of Tour de France

    Read more

  • French lawyer files complaint against Israel at ICC

    Read more

  • Ukraine names acting PM after Yatseniuk's shock resignation

    Read more

  • BNP to pay $80 million for defrauding Dept of Agriculture

    Read more

  • Deadly strike on UN shelter in Gaza Strip

    Read more

  • Pope meets Christian woman sentenced to death in Sudan

    Read more

Europe

Finance ministers nail down details of eurozone safety net

Video by Georja Calvin-Smith

Text by News Wires

Latest update : 2010-06-08

Eurozone finance ministers met in Luxembourg Monday to set terms on massive emergency loans and new cross-border budget sanctions, just as fresh concerns surrounding debt in eastern Europe hit stocks and the euro.

AFP - Euro finance ministers on Monday "signed" legal documents establishing a 440-billion-euro fund for emergency loans to debt-laden states, Luxembourg Prime Minister Jean-Claude Juncker said Monday.
  
"We signed a few moments ago," Juncker told a press conference in Luxembourg, which he said became the first shareholder in a new "limited liability company" set up to administer the fund, worth 525 billion dollars.
  
Juncker said that "some member states" had still to complete their adherence, but a diplomat added that Germany had signed minutes before Juncker spoke.
  
An "approval process," including the appointment of a board chairman, will be "finalised in the coming days," Juncker said.
  
European Union economic and monetary affairs commissioner Olli Rehn said the signature, almost one month after countries agreed the trillion-dollar "backstop" facility in conjunction with the IMF, showed there was "no uncertainty left" over Europe's capacity to deliver on its promises.
  
Rehn said the eurozone aid came on top of a 60-billion-euro facility guaranteed by the EU's budget, "based on long guarantees ... which is up and running and can be readily activated if requested and deemed" required.
  
Portugal, Ireland, Spain and Italy are among the favourites expected by markets to call on help from the fund, but Rehn warned that obtaining cash loans could be as long and drawn-out an affair as proved the case with Greece.
  
"The essential thing is that this is based on the same kind of conditionality as the rescue package for Greece," he said.
  
Loans would be "strictly conditional" and there "would have to be a programme agreed with the country(ies) concerned with the EU and the IMF," meaning severe spending cuts and structural reforms to tax and labour markets.

Date created : 2010-06-07

  • EUROZONE

    A wave of austerity measures engulfs struggling EU economies

    Read more

  • MARKETS

    Shares tumble over eurozone debt woes

    Read more

  • EUROZONE

    EU agrees on coordinated action, financial sanctions

    Read more

COMMENT(S)