Eurozone leaders have fleshed out the details and agreed to a new bailout package for the region that will double the current fund’s size, according to Der Spiegel.
The new ESM, or European Stability Mechanism, will be able to lend up to €500 billion ($674 billion). The current fund can only lend €250 billion. This new, permanent fund will come into effect in 2013, so the eurozone needs to muddle through a little under another two years of uncertainty before this takes effect.
German Chancellor Angela Merkel continues to struggle to get other eurozone leaders on board her push for a “pact for competitiveness.” Previously viewed as the second part of the stability measures that would be agreed to at March’s eurozone summit, it now seems in serious doubt.
Whether any form of her play for European fiscal stability will find support before the March meeting is unknown.
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