A €2.5 trillion firewall for Eurozone | New Europe ;.. Then there was the European Financial Stability Facility and the permanent fire wall mechanism to succeed it, namely the European Stability Mechanism. Those two financial tools are going to coexist and their joint fire power will be of €700bn.
Last but not least, over the past three months the European Central Bank handed out €1 trillion to 800 Eurozone banks, in the form of three year liquidity support loans at the negligible interest rate cost of 1%. The ECB however has spent more money in supporting the Eurozone's capital markets.
In detail, the European Central Bank's interventions in the secondary sovereign debt markets to support the prices of the Greek, Spanish and Italian debt bonds must have reached a round sum of €200 billion.
The IMF
On top of all that, the major Eurozone economies have pledged another €200bn in support of the IMF's own financial arsenal. As it turned out this past weekend in Washington, the new money pledged by the developed and the developing member countries of the Fund has reached almost €700bn in new funding, with the €200bn being the European contribution.
The IMF will not say that this new money is to be used to counter a possible new crisis in the Eurozone, but it goes without saying that most of it will be used to counter a probable new attack on European values. Avoiding duplications add all that together and the fire wall available for Eurozone may reach €2.5 trillion.
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