October 26, at the summit of the EU agreed on the recapitalization of European banks. Personal investors managed to prevail upon write off half of Greece's debt burden (debt achieves a size of 350 billion euros, of their individual investors hold 210 billion). European Foundation for monetary stability plan to increment to 1 trillion euros, and filling it will probably be the developing countries (BRIC) and the International monetary fund.
It should be noted that Greece is on the verge of default, because can not fulfill its obligations under the loan. The second to the difficulties of the monetary situation country EU — Italy is the public debt to 1.9 trillion euros, 120% of the GDP of the country. Italian Prime Minister Silvio Berlusconi said the plan to reduce the debt of Italy will be ready by November 15. In the group of debtors also champions Spain, Portugal and Ireland.
These solutions come as a surprise to many, because the negotiations were long. Berlin is very cautious about the idea of further assistance in crisis countries. For instance, German Chancellor Angela Merkel was against the proposal of French President Nicolas Sarkozy common to start printing its debt bonds. The fate of this idea so far not been determined.
Polish Prime Minister Donald Tusk has made a statement to the effect that prior to June 30, 2012 the capital adequacy (the ability of the financial and credit institution to meet its obligations, regardless of the monetary loss) planned to see European banks to 9%. So managing the EU is planning to make the banking system more resilient to the likely monetary risks.
According disk imaging of the European banking organization (EBA), to increase the capital adequacy European banks need to allocate 106.4 billion euros. In the EBA said that the additional cash infusion required 70 EU monetary institutions. At the summit, representatives of the European Union decided that the money for these purposes will be found, although some sources are not dubbed.
Experts believe that the most in need of recapitalization of Greek, Italian and Spanish banks, which are the holders of the sovereign debt of their own countries. The least support is needed Portuguese, French and German banks. The capital of the Bank of England and Ireland were considered sufficient.
During the negotiations, Angela Merkel, Nicolas Sarkozy, the executive director of the IMF, Christine Lagarde, the head of the Institute of international money (structure of the banking influential lobbying) Charles Dallara EU leaders sought to write off 60% of Greece's debt. Dallara, who was commissioned to protect the interests of private banks, said that such a radical solution to the Greek problem can lead to the transfer of this model to other countries.
In the end, agreed on a figure of 50%. Debt relief should change the attitude of the Greek debt to GDP. By 2020, it should be reduced from the current 170% to 120%. In addition, the EU will provide Greece with additional financial assistance in the amount of 130 billion euros. Funds will provide International monetary fund and the European monetary fund Stability Facility (EFSF).
Athens also have to once again lower municipal spending to reduce the budget deficit. Greece had already given a promise to do so. It is clear that ordinary citizens will not be happy about such announcements. Greece has more than one month shaken protests, some of them have led to pogroms and clashes with the police.
Raising "European rescue fund." European Foundation for monetary stability will be the main inventory of salvation is not only Greece, and Italy, Spain, Portugal, Ireland. To do this, increment the EFSF to 1 trillion euros. At the current time in it 440 billion euros.
European Department, noted the fact that this amount will not save the EU from the debt crisis. Stabilize the money market in the current criteria of the EU will be able to only fund, which will be increased to 2 trillion euros.
Who will bail out Europe?
It is interesting that Paris and Berlin itself is not going to fill the fund, at least, quite. Favorites of the EU have concluded that such a move could lead to a downgrade of France and Germany. So we decided to bring this matter emerging BRICS countries and the IMF. So, at the same Chinese foreign exchange reserves exceed the figure of 3 trillion dollars.
Beijing has reacted positively. Chinese Premier Wen Jiabao said the country's readiness to assist the European Union, because "money tornado "in this region could cause a severe blow to naikrupneyshemu export market of China. French President Nicolas Sarkozy said that in the near time, wants to start talks with Hu Jintao on the role of China in the EFSF. October 28 in Beijing should come EFSF head Klaus Regling.
The EU believes that Beijing might take a wider scope of municipal bonds of countries such as Greece, Italy and Spain, which would give Europe a stabilizing effect and to prevent the possible default of these states. Some experts assume that China can increment the proportion of European debt securities in their own foreign exchange reserves. Although it is not clear that this would save the EU temporarily calm the markets, this measure will help delay the denouement. But for a fundamental configuration of the situation need to change the strategy, it is only a tactical move.
Beijing appears to support the European Union, the move is beneficial to him. In 1-x, he'll get another lever of political influence on the countries of Western Europe, the easier it will be to put pressure on them to get the latest technology, including the military. In-2, saving the EU, the Chinese have come to the rescue, and its economy retracted beginning of the storm, which is profitable U.S.. So, Doctor of Economics Institute of Texas James Galbraith believes that the debt crisis of the EU will lead to an explosion of violence that begins in the peripheral countries, and at some point, "the destruction of society becomes unbearable, and then an explosion."
Japan. The head of the Ministry of money Land of the Rising Sun by Jun Azumi made the statement that his country is ready to provide financial assistance to the European Union to resolve its debt problems in at least some "good time." Japanese minister said that stability in the European Union — in the interests of Tokyo. Need to see that at the current time, Japan has bought about 20% of the EU debt obligations.
In the middle of other states, which may assist in the rescue of the EU, dubbed Norway, Russia, South Korea, Australia, the oil monarchies of the Persian Gulf.
The U.S. position
A spokesman white houses Jay Carney said the United States is not prepared to help countries Euro Union who are suffering financial distress. According to him, Washington will not directly provide financial assistance to Europeans. In Snow White House said that the EU countries have enough money to deal with this potential difficulty. Management of the European states must show the political will to solve its own debt problems.