This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Euro Ministers Back Next Greece Bailout Payment

The measures agreed by the earlier Thursday by the EU finance ministers had been the subject of months of intense haggling.

First, finance ministers from the 27 EU countries negotiated through the night to agree to give the European Central Bank oversight of their banks. That is a key component of what many hope will eventually become a full-fledged banking union â¿¿ a single rulebook for all banks and coordinated plans for helping lenders in trouble.

Crucially, the single supervisor paves the way for Europe's bailout fund to give money directly to struggling banks, without dragging governments into the mess.

Then, the 17 EU countries that use the euro waved through a total of ⿬49.1 billion ($64 billion) in bailout funds for Greece, ⿬34.3 billion of which will be disbursed in the coming days.

The funds are vital because Greece needs the money to stay afloat and avoid a calamitous default. But the deal is also important for the other 16 countries because disagreement over how to handle Greece had raised fears that a default would bring down the entire currency union.

Dealing with the connection between banks and government debt â¿¿ a toxic loop that has forced several countries to ask for bailouts after they tried to rescue their banks â¿¿ also addresses a major cause of the region's financial crisis.

"The crisis came by way of the banks and now a tool is in place so that nothing will be like it was before," declared French President Francois Hollande on his way into Thursday's summit.

However, serious challenges remain: The economy across the eurozone is in recession; unemployment is rising; and in recent days, industrial production and retail sales have fallen further than forecast.

And while leaders have reached a couple of significant agreements this week, there are still some tough problems to crack.

2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs