The member states of the Eurozone finally realised that they had to do something over the weekend, to prevent a financial tsunami engulfing Euroland.
Finance ministers have now unveiled a package that pledges to guarantee the debt of any of the countries that use the Euro. They include:
- Euro440bn in loans or guarantees from Eurozone countries
- Euro60bn from the European Union's Budget
- Up to Euro250bn from the IMF.
As a result, dead cats are bouncing throughout Euroland (ie markets are rising).
This of course is only a temporary relief, the PIGS will have to get their houses in order if the Eurozone is to maintain its credibility/existence.