European Union to utilize Eurozone’s permanent bailout funds to help troubled banks

The EU leaders have decided to use the Eurozone’s permanent bailout funds to support struggling banks directly, without raising government debt.
EU leaders also agreed that bailout funds could be utilized to stabilize financial markets, which implies buying government debts or bonds. These are steps that Spain and Italy desired, to curtail their borrowing costs , which both consider as their most serious economic problem.

Objective: The move is targeted specifically at rescuing Spain’s troubled banks.

Month: Current Affairs - June, 2012