Eurozone's "breakthrough" raises questions

07/1/2012 | Economic Times (India), The · Reuters

What was widely hailed Friday as a breakthrough in the eurozone crisis immediately lifted markets. But observers noted a lack of detail in plans that, among other things, would allow the European Stability Mechanism to recapitalize ailing banks directly. Possible inadequacy is one potential problem, with "the ESM's capacity of 400 billion euros [after the Spanish banking bailout] ... the equivalent of about 15% of the Italian and Spanish bond markets," said Jonathan Loynes at Capital Economics.

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Economic Times (India), The · Reuters

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