About the result of EU summit

Last week, there was second summit of EU leaders in order to solve Euro zone debts crisis. They agreed to do two things that banks in the EU must satisfy a core capital ratio of 9% by mid- 2012. However, except that, it postponed reaching an agreement about detailed package for crisis until G20 summit. Furthermore, the agreement looks still far to get real solution to crisis. This is because the capital ratio was originally 5%. It will be 9%, and it means that by lifting its ratio from 5% to 9%, 61 European banks will be unsatisfied by that ratio. Other important agreement European leaders reached is that increasing of European Financial Stability Facility (EFSF) four or five times to €1 trillion ($1.4 billion). However, it is hard to prepare that amount of money, so France which has biggest percentage of burden suggest China funding European to prepare EFSF. If they succeed, it is very positive and turns the situation to be good.

 As I talked last post, they start finding solutions about debts crisis. However, this crisis need to more corporate between many countries like France and Germany. They both still want not to lose their profits, in case of France, cutting the values of bonds they bought.

 I will keep checking on this crisis until it finishes being in crisis because this crisis has effect on American, and the other countries.