Treasury Auctions Set for This Week. Merkel Says Politicians Must Not Interfere on ECB Bond Buying. History Repeats as Fed Is Expected to Announce Economic Stimulus. German Court Backs Euro Rescue Fund. With the ruling, the 17 European Union countries that use the euro will be able to move ahead with the establishment of the , something like a Continental version of the International Monetary Fund.
The mechanism will handle bailouts and work in tandem with the European Central Bank to buy the bonds of countries like Italy and Spain that are straining under high interest rates. The court ruled that Germany could proceed with its contribution to the mechanism, but it set certain conditions, including a requirement for parliamentary approval of any increase in the agreed-upon German contribution of 190 billion euros, or about $240 billion. The fund, with $644 billion, is intended to buoy struggling countries and help protect the common currency, an impossible mission without Germany, which has the European Union’s largest economy.
“Once again, Germany today sends a strong signal out to Europe and the world beyond,” Ms. Euro Strengthens After Fed Hints at New Stimulus. Can the SEC Make a Softer Cushion for the Next Financial Crisis? Germany’s Merkel Pledges to Help Greece Stay in Euro Zone. Pricing the Cost of a Greek Euro Exit. Spain's Regions Contribute to Wider Deficit. Europe’s Debt Crisis.