Wednesday, January 26, 2011

EU Aims to Unveil New Plan on Debt

Wall Street Journal
January 26, 2011

European leaders are hoping to unveil a new comprehensive rescue plan to prevent Europe's debt crisis from spreading, probably in late March, Germany's deputy finance minister said Tuesday.

"We aim to deliver a comprehensive package," said Jörg Asmussen at a Bloomberg European Debt Crisis Conference in New York. He added that while European officials are meeting in early February, another meeting, at the end of March, will be "more decisive."

Hopes that European officials will expand or beef up their bailout fund have helped buoy the euro in recent weeks. Late Tuesday, the euro traded at $1.3682, up from $1.3638 late Monday, remaining near its highest level against the dollar for two months.

While investors are betting Europe's leaders are ready to provide more aid, they are in the dark about the details. Among possible measures: Expanding the current size of the bailout fund; lowering the interest rate troubled euro-zone countries must pay when accessing the fund or allowing them to borrow to buy back their own mounting debts.


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