Just picked up these details of who actually has the highest capital available in Euro’s and how much is really available to lend. Not a surprise Germany leads the pack!
Also that maximum available for lending is just 500 billion not a lot when Spain has been promised 100 billion or 1/5th of the pot. This relationship to countries and the funding mechanism known as the EMSF will not cover further bailouts as was announced on EUobserver today with comment as follows:
Italy‘s Mario Monti has said his country does not need a bail-out, even though its borrowing costs have soared amid contagion from Spain. This is and seems to be recent history repeating itself as the same comments were made by Spain’s Prime Minister Mariano Rajoy at 9am UK time that they did not need a bailout then they needed 40 billion a few hours later. By the following day at 4pm UK time they needed 100 billion.
So my question is how long will it be before the Euro Zone runs out of money?
- Why Spain’s Big Bank Bailout Is Really a Big Bust (business.time.com)
- Spanish Bailout: More Money for Banks, More Austerity for Citizens (news.firedoglake.com)
- Euro Zone Agrees To Lend Spain Up To 100 Billion Euros (huffingtonpost.com)