Wednesday, June 13, 2012

France Will Propose New Stability Package

France is set to propose a new stability package for the Eurozone. It would have the ECB tighten bank supervision and the ESM (European Stability Mechanism) authorized to recapitalize banks directly rather than through governments (as in Spain). The French believe, rightly, that the negative market reaction to the Spanish bailout shows that a new formula is necessary.

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