Within the EU it is being discussed how to set up a fiscal backstop, a barrier of public money to be used in times of crisis, not just to help out a bank. One option being considered in Brussels is turning The European Stability Mechanism (ESM) into a kind of management tool for a crisis.
European Stability Mechanism
Yiannis Mouzakis via Macropolis | The head of the European Stability Mechanism (ESM) Klaus Regling leads an organisation that in its previous form as the European Financial Stability Fund (EFSF), issued loans of 17.7 billion euros to Ireland, 26 billion euros to Portugal and just under 131 billion to Greece.
ATHENS | By Yiannis Mouzakis via Macropolis | The total amount of loans the eurozone and the International Monetary Fund supplied to Greece between May 2010 and the most recent disbursements last summer stand at 226.7 billion euros. This is equivalent to almost 125 percent of Greece’s economic activity in 2014. There seems to be a general misconception that feeds a misleading narrative in which the loans were used to keep the Greek state afloat, maintain its basic operations and pay salaries of doctors, teachers and policemen.
By Tania Suárez, in Madrid | Hanseatic Brokerhouse's director general in Spain, Gabriel Montalto, said in a conversation with The Corner that international investors have lost trust over Italy and Spain. Also, he considers that both countries will have to publicly accept the reality of the situation if they want to win back the confidence of markets. Question. Apart from the approval of the national parliaments, are there any other…