In the midst of an economic tailspin in Europe, finance chiefs from the Euro’s 17 countries are working to form a bailout plan to prevent worsening financial trouble. The group is devoting its time to three main focuses: giving the European Financial Stability Facility (EFSF) more money, helping Greece out of debt, and prompting struggling banks to increase capital buffers in defense against a worsening economy.
European Union governments recognize that with nearly a fourth of EFSF funds going to Ireland, Portugal, and Greece, there isn’t enough money left to boost weak banks and bail out Spanish and Italian economies on the brink of downfall. However governments have decided not to increase financial commitments to the EFSF. Furthermore, no decision has been made about appropriation of the funds between Germany and France, which has forced European leaders to call another meeting for Wednesday.
Though indecision seems to have the European Union at a deadlock for now, government leaders are determined to do what they must in order to fix the economic situation. In a press conference, International Monetary Fund Director Christine Lagarde stated simply “We will find solutions.”