ECB's Almunia: EZ has bailout plan for Euro members

Reported by Reuters, 3rd March 2009

Note the emphasis on “If crisis emerges in one euro zone country” (and yes, it could just be that English isn’t his first language), but at the end of the day, with any EZ bail out, basically it boils down to this; Ireland, Portugal, and Greece are all right just so long as neither Italy nor Spain go down first.

Blue Horseshoe

The solution wouldn’t be money printing would it?God forbid,hush ma mouth,sorry, I forgot the ECB’s legendary inflation fighting credentials there for a moment. :smiley: :smiley: :smiley:

Um, this is the EC not the ECB.

The state governments and the council of ministers have control over the ECB, not the EC.

But as Italy and Spain are top of the list of injured wilderbeast and most likely the first to be attacked by the stalking predators…

…I think the ‘bailout plan’ may be post attack triage. No open check book bail out here.

Remember that Soros et al went after the UK in the ERM end game in '92, not the small fry. In these scenarios you make the big money going after the big guys not the minnows. So Italy is first on the list.

Surely Italy are ok (relatively, at least).

While they haven’t completely escaped the banking crisis, they do look to be better insulated than Ireland or the UK. Also, their citizens didn’t load themselves up to the gills with debt.

That’s a bit like saying the Federal Reserve doesn’t control US economic policy at the moment there Yogi.

To me,the EC/ECB,Bank of England/Uk govt it’s all the same,tomaydoes/tomahdos whatever.

Not really. It’s a bit like saying that the Federal government in the US controls the Fed. In europe, there is no federal government - the council of ministers is as close as it gets. They are the ones with capital raising power; they are the ones that will pay; they are the ones that control the ECB…

Mr. Almunia’s secret plan may well involve getting them to agree to something; they may already have agreed to it, but I think his jaw-boning is not going to have any effect until the council of ministers state their support for it.