And that was that. An idea that tantalized global financial markets came out of the weekend and immediately sank into the tar pit of European decision making.The sensation at the IMF meetings in Washington was a vaguely formed idea to increase the lending capacity of Europe’s EFSF bailout fund not from €250 billion to €440 billion as agreed in a July 21 summit, but to as high as €2 trillion by leveraging its assets.Only this, proponents argue, would persuade markets that the EU wouldn’t allow Europe’s government debt crisis to spread to Italy and Spain, potentially scuttling the euro as currency.
Tuesday, 27 September 2011
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