EU unleashes $1 trillion rescue package for embattled euro

Haaretz reports: “Global policymakers unleashed an emergency rescue package worth about $1 trillion to stabilize world financial markets and prevent the Greek debt crisis from destroying the euro currency.

The rescue, hammered out by European Union finance ministers, central bankers and the International Monetary Fund in marathon talks, was the largest package in over two years since G20 leaders threw money at the global economy following the collapse of Lehman Brothers.

The size of the package surprised financial analysts and the euro rose close to 2 percent while stocks in Asia firmed.

The U.S. Federal Reserve reopened currency swap lines with several central banks and Group of Seven and Group of 20 finance ministers weighed in with their backing for the measures.

EU Monetary Affairs Commissioner Olli Rehn told a news conference the package of measures ‘proves we shall defend the euro whatever it takes.’

The emergency measures are worth much more than any previous attempts by the 27-country EU or the 16-state single-currency group to calm markets.

They come after the Greek crisis drove sovereign debt yields and insurance on this debt to record levels.

Financial markets had started to punish other euro zone debt of members with bloated budgets such as Portugal, Spain and Ireland, in what Sweden’s finance minister described as ‘wolfpack behaviors.’

The $1 trillion package consists of 440 billion Euros in guarantees from euro area states, plus 60 billion Euros in a European instrument.

EU finance ministers said the International Monetary Fund was expected to contribute 250 billion Euros, taking the total to 750 billion Euros, or around $1 trillion…” (Financial collapse is coming during the 7-year period called the Tribulation – James 5:1-4; Revelation 18:10, 17, and 19.)