Courtesy of Jesse's Cafe Americain
The financiers and politicians do like to make a 'splash' especially when they have nothing real to say. And it does provide a nice excuse for the end of quarter stock market charade.
To put the amount in context, the Spanish banks alone need that entire amount to remain solvent.
So far it looks like nothing of great significance and the stock futures are lackluster in their reception. It is more of a 'stimulus plan' and a collection of things already on the table.
Kicking the can…
The equity futures are not impressed.
Dow Jones newswire
European Union leaders meeting Thursday were set to commit to a growth pact worth 120 billion euros ($149.8 billion), including a boost in the capital of the European Investment Bank of EUR10 billion, as well as finalizing a plan to strengthen the euro zone by year-end, according to a draft of their conclusions.
"It is crucial to boost the financing of the economy. EUR120 billion (equivalent to around 1% of EU [general Net Income]) are being mobilised for fast-acting growth measures," the draft said.
The agreement of a growth pact would represent a political victory for French President Francois Hollande who pushed the issue during his election campaign. He argued the growth pact was needed to offset a fiscal compact agreed in January which ratcheted up further austerity policies in Europe.
Still, despite the big headline numbers, the pact seems to provide little new real money and relies on ideas that have been circulating for some time about how to better deploy the EIB and EU budget funds. Many EU officials have said they don't expect the policies to produce a significant change in the economic outlook.
The draft also said that European Council President Herman Van Rompuy would be asked to report back in October and finalize by year-end his report, released Tuesday, on ideas for deepening integration within the euro zone.
Mr. Van Rompuy prepared the report with European Central Bank President Mario Draghi, European Commission President Jose Manuel Barroso and Luxembourg prime minister and head of the euro-zone finance ministers Jean Claude Juncker.