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Are You Ready For The EU Fiscal Capacity?

YouKnowWhatIMeanLike

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Apr 13, 2011
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7,225
The Slovak EU presidency has put a new type of EU budget firmly on the agenda for the Eurogroup meeting scheduled for tomorrow.

This new fund is also known as the "fiscal capacity" in EU jargon. The FC will provide a mechanism to move money automatically from richer EU countries that are prospering to those that are not doing so well. And it will function as a cushion to external shocks to the euro zone by allowing big spenders to tap even bigger into the budget of other countries if they so desire.

EU finance ministers, central bankers will consider a euro zone crisis fund | Reuters

On the flip side it will put countries like Greece under permanent fiscal supervision apparently.

Proposal of New Euro Zone Fund Might Put Greece under Permanent Fiscal Supervision | GreekReporter.com

Don't think this Slovak kite is going to fly too well with Wolfgang.
 
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benroe

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Jan 29, 2011
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Isn't there another fiscal thingy that can force us stomp up 7 billion on two weeks notice?
 

stopdoingstuff

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Feb 26, 2011
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Another one of those ideas that would never pass if the electorate had anything to do with it.
 

ibis

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I thought that the EFSF was set up in 2010 to do what this new fund proposes to do?
ESM?

http://www.efsf.europa.eu/attachments/faq_en.pdf
Not really - I think you could say that the EFSF exists because there isn't anything like this. The EFSF is a 'manual' version - first you have a crisis, then you admit you have a crisis, then you ask the EFSF for funding, then the EFSF decides whether you get it, and attaches some kind of reform program.

This seems to be the other way round - you qualify to be part of the fund by being fiscally responsible, and in return the money is simply available.

A bit like the difference between a loan and an overdraft facility.
 

GabhaDubh

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May 20, 2009
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no problemo, but you know that you will foot the bill?

We have money flowing in,

Ireland sells €1,000 million of its 10-Year bond by auction
8 September 2016 – The National Treasury Management Agency (NTMA) has today completed an auction of €1,000 million of the benchmark 10-year Irish Government 1% Treasury Bond 2026, at a yield of 0.33 %.

Total bids received amounted to €2,452 million which was 2.45 times the amount on offer.

Maturity Amount Yield Cover
15 May 2026 €1,000m 0.33% 2.45 times


With the completion of today’s auction the NTMA has raised €6.5 billion from its stated target range of €6 – 10 billion in the bond markets this year.
 

YouKnowWhatIMeanLike

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Apr 13, 2011
Messages
7,225
We have money flowing in,

Ireland sells €1,000 million of its 10-Year bond by auction
8 September 2016 – The National Treasury Management Agency (NTMA) has today completed an auction of €1,000 million of the benchmark 10-year Irish Government 1% Treasury Bond 2026, at a yield of 0.33 %.

Total bids received amounted to €2,452 million which was 2.45 times the amount on offer.

Maturity Amount Yield Cover
15 May 2026 €1,000m 0.33% 2.45 times


With the completion of today’s auction the NTMA has raised €6.5 billion from its stated target range of €6 – 10 billion in the bond markets this year.
Ireland isn't the only country in the EU with a debt problem you know

 
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