A bigger, more comprehensive EU crisis plan is in the works, Bloomberg reports.
Key parts of the proposal include:
- A EUR 60 bln loan to Portugal
- Offering EFSF loans at lower interest rates
- EFSF could buy government bonds in secondary market
These packages take a good bit of time to put together, so don’t expect any final framework until next week’s Finance minister’s meeting at the earliest…
One thing is clear though: The euro will not collapse without a major effort from Germany to keep it afloat. Any thought of bailout fatigue on the part of the Germans is misplaced, at least at the leadership level.
