The Eurozone has official launced their new permanent fund to bail out struggling economies and banks. This new fund is being led by the European Stability Mechanism, or ESM for short. This fund will give out $650bn by 2014, 27% of which is coming from Europeans strongest economy: Germany. The new ESM will be led by the Prime Minister of Luxembourg, Jean-Claude Juncker, who is also the head of the Eurogroup. The Eurogroup is hoping that the ESM will be a large step towards a monetary union in the EU (or the universal sharing of currency). However, many people are saying that $650bn will not be enough to stabilize the EU. For perspective, 1 country (the US) owes 28 times more of the amount that the entirety of the EU will be getting. Even though the US is a larger economy and of size, splitting $650bn among several different countries might not be as effective as people hope it will be, seeing as $150bn that Greece already got was not effective in restoring its economy.
Matt Stochelski
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