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US is going to bailout EU

Published: Wednesday, 1 Dec 2010 | 1:17 PM ET
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 The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund. "It is up to the Europeans. We will certainly support using the IMF in these circumstances."

"There are obviously some severe market problems," said the official, speaking on condition of anonymity. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."

The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.

The developments have echoes of the pressure applied by Washington on European capitals last May to create the near $1 trillion EFSF safety net that was last week used to rescue Ireland after its banking crisis spiraled out of control.

The IMF, whose biggest single shareholder is the United States, has committed 250 billion euros to the EFSF.

While reluctant to dictate to Europe how it should address the unfolding debt crisis, the U.S. government is growing concerned about the global fallout of Europe's predicament.

U.S. Treasurys' prices fell and the euro strengthened against the dollar on Wednesday after the news that the United States would be prepared to support an enlarged EFSF.

Germany, whose leaders have expressed frustration at the market backlash against their plans to solve the euro zone's debt problems, does not want to make the stability fund larger.

 
Gal51

Asked by Gal51 at 2:09 PM on Dec. 1, 2010 in Politics & Current Events

Level 23 (15,495 Credits)
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Answers (18)
  • We aren't getting the money from anywhere. It's coming from the IMF...just like it says in the first line of the story.

    The primary funder of the IMF is the USA. The US just but in an additional 108 billion. Do you think the IMF has a money tree as well? Well never mind, they do. The US.
    Carpy

    Answer by Carpy at 7:00 PM on Dec. 1, 2010

  • Who's going to bail out US? would be my question
    admckenzie

    Answer by admckenzie at 2:12 PM on Dec. 1, 2010

  • Well, that's just flipping fabulous.
    lovinangels

    Answer by lovinangels at 2:22 PM on Dec. 1, 2010

  • Are they CRAZY???? Probably so!
    tinamatt

    Answer by tinamatt at 2:38 PM on Dec. 1, 2010

  • Not unless they do it before the end of the year..........
    itsmesteph11

    Answer by itsmesteph11 at 2:49 PM on Dec. 1, 2010

  • So, where are we going to get the money to do this?
    May-20

    Answer by May-20 at 2:49 PM on Dec. 1, 2010

  • So, where are we going to get the money to do this?

    From dollar fairies

    Oh please please please give me a dollar fairy!!!
    DSamuels

    Answer by DSamuels at 3:29 PM on Dec. 1, 2010

  • The money falling_leaves, they have a whole farm of them, didn't you know?  lol...

    agentwanda

    Answer by agentwanda at 9:19 PM on Dec. 1, 2010

  • But seriously, I guess monopoly $$$ works these days...
    agentwanda

    Answer by agentwanda at 9:21 PM on Dec. 1, 2010

  • Okay, and what is the question?
    ballewal

    Answer by ballewal at 2:10 PM on Dec. 1, 2010

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