The EU Or Expedite The Establishment Of A Permanent Aid Fund

According to an internal document from the European Union,

This permanent aid fund will have 500 billion euros (US $677 billion) of funds, so as to provide protection for Italy and other countries.

In addition, the EU will also make regulations requiring creditors to share costs with countries that have "unsustainable" debts.

According to the documents obtained by Bloomberg, senior EU finance officials will meet next week to examine the cost advantage of creating the fund.

The European Union plans to set up a fund called the European stability mechanism (ESM) in July 2012, a year ahead of schedule.

Eurozone officials are stepping up efforts to control the spread of the crisis as Greece becomes even more gloomy and the sovereign debt crisis, which has lasted for 18 months, has led to a relapsing cycle in the eurozone.

The document shows that speeding up the establishment of the European stability mechanism will protect the "more effective financing structure" and provide additional assistance to donor countries.

After upgrading the temporary assistance fund to the permanent assistance fund, how to deal with the total Euro 440 billion (US $594 billion) "European financial stability tool" (EFSF) is the current focus of debate.

The "European financial stability tool" relies on guarantees provided by EU countries, while the European stability mechanism has its own pool of funds.

EU Economic Affairs Commissioner Olli Rehn and French finance minister Francois Francois Juan yesterday said that one option was to leverage leverage to enhance the vitality of the "European financial stability tool", which was inspired by the US response to the 2008 financial crisis.

According to another EU internal document obtained by Bloomberg, the operation of repurchasing Greek bonds should be geared to all investors and cover all Greek government bonds that are in circulation.

In addition, the document also proposes to repurchase Greek bonds under the terms of the swap agreement, which aims to reduce the credit rating agencies' view that Greece will "be selective".