Thursday, June 28, 2012

Europe: Growth Pact Update

by Calculated Risk on 6/28/2012 05:00:00 PM

There is a little news from the European summit meeting:

Herman Van Rompuy, President of the European Council did tweet:

With the #GrowthCompact we will boost the financing of the economy by mobilising around EUR 120 bn for immediate growth measures.
This is the plan that was discussed last week.

Rompuy also wrote:
A EUR 10 bn increase of the EIB capital will increase the bank's overall lending capacity by EUR 60 bn. This money must flow across Europe.
Earlier Angela Merkel cancelled a planned press conference.

The Financial Times is live blogging the European summit: EU summit: Live blog
Van Rompuy says no agreement yet on growth pact because they haven’t finished discussing all the chapters yet. He would not confirm it was being blocked by either Mario Monti or David Cameron; it was simply unfinished. He said two countries were most concerned to see agreement on both long and short term together – he didn’t name them, but Germany and Italy are the most likely suspects. Both inclined to say no agreement until it is all agreed.
excerpt with permission
Meanwhile Bloomberg is reporting there is agreement: EU Leaders Agree 120 Billion-Euro Pact to Promote Growth, Jobs