Europe Agrees To $1 Trillion Bail Out Fund; Markets Up On News of Agreement
European leaders agreed to a $1 trillion (€800 billion) permanent bailout package which has raised confidence across markets in the belief that there is now enough money to handle most of the financial problems European nations have been going through for the last two years.
In a statement by Euro financial leaders it said in part, “Finally, robust firewalls have been established."
Still, questions continue about whether that is large enough for countries like Spain and Italy who have much larger economies than Greece, Portugal and Ireland. One of the biggest concerns about this deal is it uses money already allocated from previous bailout commitments.
Yesterday Spain was hit by riots as the government tries to deal with its own financial debacle and cut cost deeply.
Part of the deal also included the so called Eurogroup, countries that use the Euro, they will donate $200 million (€150 billion) to the IMF hoping that is enough to convince large donors like the U.S. and China to resume their own donations.
The Dow Jones was up to 13199.97 by noon on news of the agreement.