17-nation Euro Zone Summit was held on 21-22 July 2011 in Brussels, capital of Belgium with the objective of finalizing a second rescue package for debt plagued Greece and calm the financial markets of Europe. The participating nations agreed on Marshall Plan for Europe to revive the financial markets of Europe.
Besides, the nations agreed on the following measures:
• The summit agreed to pour another 159 billion euros into Greece to stop debt contagion across Europe. To ease Greece's debt repayments on its loans, the summit agreed to extend them from 7.5 years to between 15 and 30 years in some cases, and at a rate of 3.5 percent, down from 4.5 percent.
• The Eurozone leaders welcomed the measures undertaken by the Greek government to stabilize public finances and reform the economy as well as the new package of measures including privatization recently adopted by the Greek Parliament.
• The Eurozone leaders agreed to support a new programme for Greece. This programme will be designed notably through lower interest rates and extended maturities, to decisively improve the debt sustainability and refinancing profile of Greece.
• It was decided to lengthen the maturity of future EFSF loans to Greece to the maximum extent possible from the current 7.5 years to a minimum of 15 years and up to 30 years with a grace period of 10 years.
• All euro area Member States will adhere strictly to the agreed fiscal targets, improve competitiveness and address macro-economic imbalances. Public deficits in all countries except those under a programme will be brought below 3 percent by 2013 at the latest.
• The summit made a commitment to introduce by the end of 2012 national fiscal frameworks as foreseen in the fiscal frameworks directive.
No comments:
Post a Comment