European rescue plan to salvage the Euro

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Garima Mohan

11 May, 2010

On Monday, after the 11 hours of meeting with the European Finance Ministers and IMF officials, the Rescue plan came out to rescue the entire European economy and save Euro currency's future.

THE EUROPEAN Union and IMF (International Monetary fund) after the 11 hours of meeting with the all the European Finance Ministers have come out with the plan to rescue Europe from the economic crisis.

European Union and IMF have pledged $ 1 Trillion to EU zone economies. Up to $ 750 billion will be immediately made available to solve the Greece economic crisis to deal for three years period.

Greece has accepted this aid package. Strict and close monitoring is now required to check when any country shows the deficit fund and this is necessary to stabilize the EU markets. Greece has to cut down the expenses and take the measures to rescue the economy. All of a sudden, with this news the global markets surged. Heavy buying of stocks was seen globally. Stocks rose to record high in Spain to 14% index. IMF has approved the plan of rescue. It was not easy task to bring the 16 European Union countries members to come together.

The Euro currency’s fate was in danger after the Greece debt crises worsened putting the entire European economy in crisis. There is corruption at all levels in Greece and when the Greek government tried to take the reform measures to cut the expenses, Greek people revolted with strikes and protests.

Similar situation is supposed to arise in Spain, Portugal and Ireland as these governments are also struggling to cope with the situation. This plan could have passed a little earlier had the EU members acted fast. This is the trend and history has witnessed that in Europe, the countries wait for the crises to arise and when the situation becomes inevitable then only they come together for a solution.

In Germany, Angela Merkel’s government lost the majority in the upper house as the Germans were against any German contribution to bail out Greece from this crisis. The idea to give support was not welcomed in the country. Angela Merkel played a major role in rescuing the Greece from this situation and the entire European Economy at this moment with support from the EU members and IMF.

But at home she has lost the support now. No news of any negations with Spain or Portugal at this moment was heard, as their markets are showing a sign of improvement since the news of the rescue plan.