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Eurozone offered "remedy" for crisis
02.07.2012 17:49 "Agro Perspectiva" (Kyiv) —
The Stability and Growth Pact adopted by the participants in the recent EU summit provides for allocating an additional ˆ120bn for stimulating economic growth and toughening control of the banking system.
Even though observers agree that the pact is the best EU leaders could do under the circumstances, it will only delay a solution to the main issue and is nothing but an attempt to gain time. Some experts say that «releasing the crisis» would be the best «remedy» for revamping the ailing economy.
The growth pact was adopted after days of talks as Spain and Italy bargained for better credit terms. Both countries are in the so-called ‘risk group’ and Spain’s financial system is causing a greater concern than the problems of Greece.
Markets responded with optimism to the adoption of the pact with shares going up sharply after reports about it came in.
From time to time, EU officials acknowledge the need for tough solutions, such as excluding certain countries from the eurozone. However, they fear upheavals and lack political will. The eurozone, like the European Union, was established for political considerations and these considerations are still in place.
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