EU to Create Permanent Bail-Out Fund

EU to Create Permanent Bail-Out Fund

EU leaders have agreed to create a permanent bail-out fund to help member states in times of crisis and laws, giving the EU the power to check on national budgets, BBC reported.

The decisions have been made because the eurozone had almost collapsed earlier this year due to the lack of such mechanism, EU officials said.

The new rules aim at forcing a country to set its expenses in order before its economic problems affect the eurozone.

"Today we took important decisions to strengthen the eurozone. We recommend a robust and credible permanent crisis-resolution mechanism to safeguard the financial stability of the eurozone as a whole," Herman Van Rompuy, President of the EU Council, said, as cited by BBC.

Under the new rules, EU officials will be able to impose severe fines on countries that borrow and spend too much.

The maximum debt level allowed under the EU's Stability and Growth Pact is 60% of the GDP.

The permanent fund will replace the temporary EUR 440 B one, created to bail out Greece earlier this year.

Cookies Preferences
Choose Type of Cookies You Accept Using


These cookies are required for the website to run and cannot be switched off. Such cookie are only set in response to actions made by you such as language, currency, login session, privacy preferences. You can set your browser to block these cookies but our site may not work then.


These cookies allow us to measure visitors traffic and see traffic sources by collecting information in data sets. They also help us understand which products and actions are more popular than others.


These cookies are usually set by our marketing and advertising partners. They may be used by them to build a profile of your interest and later show you relevant ads. If you do not allow these cookies you will not experience targeted ads for your interests.