After late night negotiations it has been decided to permit the European stability fund to purchase directly the assets offered by banks in Spain and and Italian sovereign bonds and by so doing permit European funds to be injected directly into ailing Spanish banks thereby reducing the burden of potential sovereign debt for which Spain is responsible. As the Italian Prime Minister Mario Monti explained there will still be conditionality, meaning the countries affected will have to meet eurozone objectives on debt reduction and timetables but it will not as strict as was imposed upon Greece. This is, along with moving toward better regulation of the banks, an improvement over the original German strict austerity position which forbid the ECB and the stability fund from buying sovereign debt. But in the absence of a major stimulus package – the 140 billion euro package that is being spoken about is far too small to accomplish much – there is still a long way to travel to rescue Europe from a recession and continued high unemployment. Nevertheless, it appears to be a small step in the right direction.
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Meta
Hi Professor Chorney I’m ROmain Cansaran and I had contacted you two weeks ago about a reference letter for my application to the London School of Business and Finance in International Business. I am contacting you to ask you if you had received the email I had sent you with the questionnaire that you have to fill in for the school as the deadline was the end of this month. So please if you get this before tomorrow I have sent you the full form at chorney@alcor.concordia.ca but tell me if you want to get it on another email address.
Thank you Professor.
Regards