Economy

Eurogroup adopted rescue plan

In Paris, a Eurogroup summit was held, at which a plan to counter the financial crisis was adopted. One of the measures should be state guarantees for financing banks. In particular, states will be able to exchange unreliable assets for government bonds. It is planned that these measures will be valid until the end of 2009.

However, 15 countries in the euro area have not finished agreeing on the amount they are willing to allocate to combat the banking crisis. According to French President Nicolas Sarkozy, at the end of the Eurogroup summit in Paris, a fundamental decision was made that the countries of the Eurogroup “on a temporary basis” will give guarantees to major European banks on interbank loans, which will provide additional liquidity that is so necessary at the time of the banking crisis. These guarantees will be valid until December 31, 2009.

At the same time, the exact amount that the Eurogroup is ready to allocate for these purposes is not yet known. Sarkozy noted that the euro area countries “will simultaneously submit their anti-crisis plans on Monday.” According to ITAR-TASS, the theme of the financial crisis will also dominate the EU summit, which will be held October 15-16 in Brussels. At this point, the anti-crisis plan of the Eurogroup, which is the economic core of the EU, must be finalized. This will allow the heads of state and government of 27 EU countries to try to approve pan-European measures to combat the crisis.

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