New Agreement – Economic Growth Package

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Italian Prime Minister Mario Monti has said, “we want there will be a significant European growth package”. He has presented at the press briefing ceremony with the Chancellor of German- Angela Merkel, Prime Minister of Spain – Mariano Rajoy and the President of France – Francois Hollande. These four nations will meet next week at EU summit.

The presented growth package is desired to comprise some steps to increase the spending for infrastructure as well as other investments.

Ø 10 billion Euros capital increase of the European Investment Bank will facilitate the European government by increasing the capacity of lending many times for that amount.

Ø Organize the idle money in the regional fund of European Commission.

Ø Many investment projects will be facilitated by the common debts of “Project Bond” which is created by Pan- Europe.

This growth package may resemble as a victory for the French President who has recently elected. He can demand a growth deal in spite of strong stipulation expressed by the counterpart of Germany.

The Leaders of the four nations has agreed upon other proposal like including the “banking union” and “financial transaction tax” into the broader of European Summit. They couldn’t generate any new idea on Eurobonds after two hour long discussion.

Italian Prime Minister Mr Monti had informed his other peers of EU that the failure of the agreement of Joint action can bring a market attack which is harmful for their economies. He had envisaged that gradually greater speculative attack without combined action from the members of Euro zone. He said, “We all mean it that the euro is here to stay”.

He expected, “we expect the EU summit will be more beneficial and credible with the previous summit which was concerned with growth”. The President of France has said, “This package would be indispensable”. He also said for other leaders of four nations to make the prospect of the growth more credible. No one has imagined that the idea for economic growth will be the another agenda of EU Summit.

 

 

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