The ECB is committed to boost the economy after the meeting of G-20 has been re-pressuring Europe to control your finances.

European leaders agree to take a decision in March to strengthen the resources available in the European Union and cope with its sovereign debt, meeting the deadlines established in the last G20 meeting held in Cancun last weekend. The G-20 stressed the need for the Union to strengthen its monetary policy and fiscal measures to harden their support, as a ” conditio sine qua non “to receive help from the International Monetary Fund. Among the measures aimed at strengthening the monetary and fiscal policy is the strengthening of the bailout funds and injecting liquidity to three years that the European Central Bank plans to launch next Wednesday.


The ECB injected liquidity

The European Central Bank has announced it will inject liquidity to three years for the second time, and very cheap to drive the reduction of sovereign debt of countries in the euro area . This second refinancing operation will allow national banks from seven countries in the euro area accept collateral other non-failed, which would allow smaller financial institutions such as savings banks, could access sufficient liquidity to fund SMEs. The measure aims to promote the circulation of money, making it reach the real economy. In this sense, the director of the European Central Bank, Italy’s Mario Draghi , has insisted on pointing out how the first injection of liquidity to three years, conducted in 2011, helped to reduce volatility in countries like Italy or Spain.

The firewall to the crisis centered in Greece

Ministers of Economy and Finance of the euro area will not address the question of the bailout fund until it has managed to close definitively the issue of second tranche of aid to Greece , after the German Parliament what has driven his approval this afternoon . The Eurogroup is scheduled to meet Thursday to discuss the advances that have occurred in the Hellenic country. This was revealed in a statement Eurogroup chief Jean Claude Juncker, who said that ” ministers are expected to examine the current bond swap in Greece and the implementation of prior actions by the Greek authorities . ”

Increasing the capacity of the rescue fund

The G-20 has invited the euro area countries to determine whether reinforcing the bailout funds and if this allows adding the resources of the European Financial Stability (EFSF) to the European Stability Mechanism (MEDE). The European Union has already agreed to the entry into force of the European Stability Mechanism for the month of July 2013, so that it could coexist with the European Financial Stability Fund to finanles year, the death of the temporary fund. However, the financial capacity of the two combined mechanisms has a ceiling of 500,000 million euros, which is now considered inadequate, wanting to expand to the 750,000 million and counting so far opposed by Germany.

European shares close lower

The decision on the European rescue fund deferred by the incandescent Greek question, the voltage returns to investors in the European market. Instability of the day has been exacerbated by fears of rising oil prices.

The FTS Euro first 300 index of top European shares ended down 0.26 percent from reaching 1,074 points ’42.