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Portugal Unveils New Cuts Ahead Of Euro Summit

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Portugal announced new spending cuts on Friday in a last-ditch effort to avoid a bailout, putting the onus back on Germany to agree to a stronger financial safety net for the European currency bloc.

A German government source said there were positive signals that Greece and Ireland, which received EU/IMF bailouts last year, might also announce new moves at a summit on Friday, opening the way for Germany to offer them more help.

Chancellor Angela Merkel wants the 17 nations that share the euro to embrace a plan for stricter fiscal discipline and greater economic competitiveness before she will consider increasing the size and scope of the euro zone's rescue fund.

She was positive about Portugal's extra austerity steps, saying it could lead to a positive outcome in the talks.

"I consider that an important step," Merkel told reporters.

"Portugal has taken an important step today which is certainly very helpful for our discussions this evening."

So the bailout fund will have to be increase?

Looks like the Germans are flexing their muscle and showing who really runs the Euro.

The ECB is the Bundesbank.

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The fragile health of many European banks served as a pivotal yet unresolved issue behind discussions Friday among European Union leaders seeking to bolster the mechanisms to support indebted countries in the euro zone.

At the summit meeting in Brussels of leaders representing the 17 euro zone countries — a larger one of all 27 members is scheduled for later this month — governments were haggling into the evening Friday over whether and how to bolster their bailout structure for ailing countries.

In return for broadening the scope of the bailout fund, Germany, the European paymaster, was calling for its partners to yield on others measures like opening up sheltered parts of the economy; raising retirement ages; harmonizing the corporate tax base; and ending the linking of wages to increases in the cost of living.

Just before the leaders met, Portugal announced additional steps to cut spending and increase revenue to reduce its deficit and stave off intense pressure to seek a bailout. At the same time, another round of stress tests on banks, being undertaken by European regulators, was being promised as more rigorous than its predecessors.

More about how to bailout European banks again...

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How about some cuts that mean their debt Rollovers dont need to be rolled over?

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  • 312 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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