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Sunday, May 09, 2010

Europe Update

by Calculated Risk on 5/09/2010 12:11:00 PM

Update2: Report: Meeting delayed. German Finance Minister Wolfgang Schäuble has been taken to a hospital with an "adverse reaction to medication". (ht Schaeffer)

Update: Live Press conference will probably be here.

No word on press briefing yet, but ...

From the Financial Times: EU to expand emergency fund by at least €60bn

The article mentions:

1) "Expand a €50bn balance of payments facility that the EU used in 2008 to help Latvia, Hungary and Romania ... This facility, which would be increased by at least €60bn, would be extended to cover the eurozone’s 16 members. Assistance would carry conditions set by the International Monetary Fund." This will be financed with EU bonds guaranteed by all EU member-states.

2) Some sort of "stabilisation mechanism" comprised of "bilateral loan guarantees between eurozone countries".

3) Some analysts are still expecting ECB to introduce exceptional measures.

The WSJ is reporting that exit polls show German Chancellor Angela Merkel's "alliance will lose re-election in Germany's most-populous state" and she will lose control of the Upper House of Parliament.