EU ministers have agreed to meet next week to discuss the possibility of a fresh stimulus package to help bolster weak economic figures coming from the European Union. EU finance ministers will focus on garnering support from the wealthiest euro-zone nations in order to bail out financially weaker nations, such as Ireland and Greece.
At the request of both the IMF and the United States, the EU will backtrack on their previous 2009 plan to begin cutting deficits in 2011 as the economic crisis is causing an increase in calls for further stimulus aid.
However, some euro zone countries, such as Italy, are somewhat skeptical of the commitment of the more fiscally sound countries to helping solve the economic crisis. Meanwhile, the idea that countries such as Germany and Sweden, who are not currently violating the EU’s deficit limit, could now afford to maintain bigger deficits and/or smaller surpluses did gain favor amongst members of the European Commission.
The meeting is set for Tuesday in Luxembourg and, at the very least, will clear up some questions as to which direction the EU is heading.
© 2006 by FxYard Ltd
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