EU finance ministers meet to secure Spain's economy
July 10, 2012, 12:41 am TWN
BRUSSELS--European finance ministers are to use this week's meetings in Brussels to attempt to secure Spain's teetering economy, with progress expected on the bailout loan for the country's stricken banks and a relaxation of the government's financial targets.
The 17 countries that use the euro have committed to support a loan for the banks of up to 100 billion euros (US$124 billion), but the precise amount needed may not be known until September, when the results of all the bank inspections are in, Simon O'Connor, an EU spokesman, said Monday.
Monday evening, the so-called eurogroup of finance ministers will attempt to reach an agreement on what conditions will be attached to the bailout loan, which will codified in a "memorandum of understanding" to which Spain must agree. The 17 ministers — some of whom will need to get approval of the agreement from their parliaments — will probably meet again, later in July, to give final approval to that document.
Then Tuesday, in a choreographed companion maneuver, finance ministers from all 27 European Union countries are expected to give Spain an extra year — until 2014 — to meet its budget deficit target of 3 percent.