EU finance ministers meet in Poland
Ed Balls
It has been pretty clear for over a year Greece cannot access global financial markets. They are only propped up with support from the other governments, the other governments are saying we will only continue this support if you keep cutting spending and raising taxes, even though that is not working.
. Financial markets remain calm after central banks pledged unlimited dollar loans - the FTSE 100 is currently 22 points higher at 5361.
The more consistent we are the better. I don't want to chase every week another cow through the village and not discuss...new ideas that can not be put into reality.
However, Austria is taking a more optimistic line. Finance minister Maria Fekter said she was "very confident that the next tranche to Greece can be paid out in October."
is continuing to give his views on the financial situation in Manchester (presumably he'll be heading off to Poland pretty swiftly after this Q&A session is over). The Telegraph's
TALF was credited with restarting frozen U.S. markets for securities backed by car, student and small business loans and leases. By taking in paper that had no other buyers at the time, the Fed acted as market maker. No losses were reported on the programme.
However, there's a problem with this nifty solution. If the EU uses leverage to turn EFSF funds into a much larger sum, then the potential liabilities increase (as the fund will end up holding much more assets). That increases the potential losses for the members of the Eurozone, who are funding the EFSF.
Eurogroup meeting
· Eurogroup debriefing
· Global economic and sovereign debt markets developments
18.30 - 19.00
at CMC Markets said:
has also flown in, a sign of America's concern over the eurozone debt crisis.
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