Friday, November 26, 2010
Europeans Clash on Bailout
September 24, 2010
European leaders sparred over whether to commit more funds to rescue struggling euro-zone countries, as financial-market pressure on the region's weakest economies intensified.
The European Union's executive arm, the Brussels-based EU Commission, floated a proposal on Wednesday to double the size of Europe's €440 billion ($588 billion) bailout fund for euro-zone governments, but the idea was dismissed by Germany, according to people familiar with the situation.
The disagreement between Brussels and Berlin comes amid growing fears that the crisis of investor confidence in euro-zone governments, which has already forced Greece and Ireland to seek international bailouts, could expand sooner or later to Portugal and Spain.