EUROPE’S FINANCE MINISTERS APPROVED CRISIS AID PACKAGE

PanARMENIAN.Net
May 10, 2010 – 10:23 AMT 05:23 GMT

Europe’s Finance Ministers approved in an emergency meeting late
Sunday a "stabilization mechanism" that could provide at least 440
billion euros (US $560 billion) for a crisis aid package aimed at
ensuring financial stability across Europe, CNN reported.

The deal comes after a week of heavy stock market losses for some of
the European Union’s member states in the wake of a massive bailout
for Greece’s battered economy.

The Ministers, meeting in Brussels, Belgium, sought to ease markets
shaken by the Greek economic crisis before they re-opened Monday.

Under the deal announced early Monday, the International Monetary
Fund could provide up to 220 billion euros (US $280 billion) to the
crisis fund in addition to the EU’s contribution of 440 billion euros,
Spain’s Finance Minister Elena Salgado said.

Another 60 billion euros (US $76 billion) would be available should
member states experience "exceptional occurrences" beyond their
control, Salgado said.

European Central Bank officials have tried to play down fears that
the economic turmoil in Greece could spread to other heavily indebted
European countries such as Spain, Portugal and Italy.

Spain saw three straight days of losses in its stock market last week
after the country’s credit rating was downgraded by the influential
rating agency Standard & Poor’s.

Olli Rehn, the European commissioner for economic and monetary
policy, praised the deal early Monday, saying "the fiscal efforts
of European Union member states, the financial assistance by the
(European Commission) and member states, and the actions taken today
by the (European Central Bank) proves that we shall defend the euro
whatever it takes."