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The Euro Surges on EU Emergency Fund

The Euro Surges on EU Emergency Fund

EU ministers and central banks met over the weekend to decide on a way to provide security for the troubled Euro zone region.

By late on Sunday they had agreed on an emergency fund worth around €500 billion, which Euro zone nations can call upon if they are under threat of falling into a situation like that of Greece.

Last week, the euro and global stocks plunged on the back of fears for the economies that use the euro currency.  Since the start of 2010 the euro has lost around 6.6 percent as investors have lost confidence in the currency and its countries.

With the severe deficit problems of Greece, the euro has suffered ever more and as the situation there looked set to take over problematic euro economies, investors fled the currency more than ever.

While the problem in Europe was at first seen as being localised to the region, soon global stocks were reacting to the situation.  

A bailout for Greece was agreed upon, but needed to be increased when it became clear that the original sum would not suffice.  Many hoped that this would end the fears surrounding the single currency area, yet soon investors worried that the ‘virus’ would spread.

Ministers and central banks now hope that the latest fund will bring back ‘peace’ and order to the wildly speculative currency market.