Govts to pump €940bn into Europe

21 October 2011

European governments are considering plans to introduce €940 billion (£820 billion) into the market in an effort to solve the debt crisis.

The major players are trying to combine the EU's temporary and planned permanent rescue funds in 2012, while they are also looking for the current ceiling limit to be scrapped, Bloomberg reports.

Chris Rupkey, an economist at Bank of Tokyo-Mitsubishi UFJ, stated Europe "has the wealth" to get on top of the problem in Greece, however he admitted it will be "incredibly complex".

It comes after the Greek government and prime minister George Papandreou pushed through the latest round of austerity measures, which means they will receive more aid from the bailout fund.

However, the two biggest financial backers in the EU - Germany and France - are at loggerheads over how to increase the European Financial Stability Facility.

Martin Andersson, director-general of Sweden's Financial Supervisory Authority, recently said the crisis in Greece is bringing increased risk to banks across Europe.

By Asim Shah

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