WASHINGTON — Under increasing pressure from global investors and world leaders, European government officials indicated Saturday that they were working to intensify their response to the continent’s growing debt problems. It was an acknowledgment, after weeks of public stonewalling, that a plan announced in July had failed to calm financial markets.
Fears that Greece could default on its mounting debts, and that other European countries might follow, have repeatedly sent global markets plunging in recent weeks. Investors are also increasingly concerned that uncertainty itself is disrupting economic activity around the world and slowing growth.
Olli Rehn, the European Union’s monetary affairs commissioner, said Saturday that there was “increasing political will” among European leaders for a new effort to soothe investors. He said they were discussing a plan to multiply the financial impact of an existing bailout fund designed to make up to 440 billion euros ($600 billion) in loans to troubled nations and banks, so that it could instead insure a few trillion euros in loans.
http://www.nytimes.com/2011/09/25/business/geithner-tells-europe-it-must-work-together-on-debt-crisis.html?_r=1&ref=world
by: Joseph McGee
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