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U.s. Would Back Bigger Eu Stability Fund

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http://uk.reuters.com/article/idUKTRE6B05H820101201

The United States would be ready to support the extension of the European Financial Stability Facility via an extra commitment of money from the International Monetary Fund, a U.S. official told Reuters on Wednesday.

"There are a lot of people talking about that. I think the European Commission has talked about that," said the U.S. official, commenting on enlarging the 750 billion euro ($980 billion) EU/IMF European stability fund.

"It is up to the Europeans. We will certainly support using the IMF in these circumstances."

"There are obviously some severe market problems," said the official, speaking on condition of anonymity. "In May, it was Greece. This is Ireland and Portugal. If there is contagion that's a huge problem for the global economy."

The remarks foreshadow a visit to Europe this week by a U.S. Treasury envoy who is expected to visit Berlin, Madrid and Paris to hold talks on the ramifications of the debt crisis.

The developments have echoes of the pressure applied by Washington on European capitals last May to create the near $1 trillion (639 billion pounds) EFSF safety net that was last week used to rescue Ireland after its banking crisis spiralled out of control.

The IMF, whose biggest single shareholder is the United States, has committed 250 billion euros to the EFSF.

So both Spain and Portugal have denied needing a bailout and now the US is talking about expanding the bailout fund. Clearly both Portugal and Spain will need rescuing at some point, judging by how things are currently progressing that point can't be too far in the distant future.

So the US is going to commit more funny money from the FED into the fund?

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  • 284 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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