Happens In Greece The economic crisis from another point of view

The EU Summit decisions

The EU Summit decisions are presented below as reported by capital.gr:

The new European Agreement will comprise of Eurozone’s 17 member states and six more nations however not all of 27 EU countries, according to the President of European Council Herman Van Rompuy.

Van Rompuy and Christine Lagarde stated that the countries will give supplemental funds of €200 billion to the IMF.

In addition, the President of European Council said that the EU member states will present their draft budgets to the European Commission. He also admitted that the intergovernmental agreement encounters obstacles, but a extensive agreement could not be achieved at this time.

EU leaders also decided new modifications for the permanent mechanism (ESM) in order to increase its efficiency.

Specifically, concerning the involvement of the private sector, they decided to stick to the existing principles and procedures of the IMF.

In this context, the leaders repeated that the decisions of July 21 and October 27 concerning the Greek Debt were unique and exceptional.

Additionally they stated that the conditions will include standardized and identical collective action clauses on the new government bonds in euro, in order to ensure liquidity in the markets.

They stress that voting regulations in ESM will be revised to make sure that the mechanism will be in a position to take necessary decisions in every case.

In particular, a special majority of 85% will replace the rule of common agreement in case the EU and the ECB determine that a critical decision is necessary, when the euro is under risk.

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