Tags: Eurozone | Bailout | Fund | Small

Eurozone Leaders Fret Bailout Fund May Be Too Small

Monday, 07 Nov 2011 12:15 PM

Eurozone leaders may hold emergency meetings to discuss fears that the European Financial Stability Facility (EFSF), recently hiked to 1 trillion euros ($1.375 trillion), may still be too small to aid debt-ridden Mediterranean member nations, the U.K. Telegraph reports.

European leaders have been scrambling to contain the Greek debt crisis from spreading, but fears are growing that the larger Italy may need rescuing.

Greece is home to a comparatively small economy, but Italy is one of Europe's largest and default there could spark a financial crisis that would threaten the global economy.

"When people see Italian borrowing costs going up like this they start to think in the 2-3 trillion euro bracket again," sources tell the Telegraph.

A meeting of European finance ministers is scheduled for Nov. 29, but the Nov. 17 emergency meeting will be needed due to the gravity of the situation, the news service adds.

berlusconi200getty.jpg
Silvio Berlusconi
(Getty Images photo)
Pressure is mounting on Premier Silvio Berlusconi to resign and allow a caretaker government — one not bound to political pressure and popularity in the polls — to navigate the country through the crisis.
Elections are currently scheduled to take place in 2013.

"He could go tomorrow. He could go next week. The sort of pressure that he is under, coming from his own people, will make it sooner than later," says James Walston, professor of political science at the American University of Rome, according to the Associated Press.

Berlusconi, meanwhile, remains defiant.

"I don't understand how rumors of my resignation are circulating," Berlusconi was quoted as saying Monday by Libero newspaper, the AP adds.

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Eurozone leaders may hold emergency meetings to discuss fears that the European Financial Stability Facility (EFSF), recently hiked to 1 trillion euros ($1.375 trillion), may still be too small to aid debt-ridden Mediterranean member nations, the U.K. Telegraph...
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2011-15-07
Monday, 07 Nov 2011 12:15 PM
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