Safeguarding the future stability of the Euro-ECB

On March 21st, in Salzburg Germany, the Member of the Executive Board of the ECB, Gertrude Tumpel-Gugerell, spoke at the Investment form about the Euro and its future. Ms. Tumpel-Gugerell started out the speech saying “it was the Austrian economist Joseph Schumpeter who stated that “a nation’s monetary system is a reflection of everything that the nation wants, suffers and is. … Nothing says what a nation is made of so clearly as what it does in terms of its monetary policy.” During the speech, she discussed the current economic situation; how the single currency has contributed towards the management of the financial market crisis; the overview of the financial market reforms in the European Union and an outline of what is still to be done to guarantee the stability of the euro over the long-term horizon.

Price of financial stability is eternal vigilance, warns Lord Turner

Lord Turner suggests banks dubbed too big to fail should be required to hold more capital than new thresholds agreed by the Basel committee on banking supervision.

Lord Turner, chairman of the Financial Services Authority, warned tonight (16th March) that the financial system faces new risks despite the global regulatory overhaul in the wake of the banking crisis.

Euro zone to raise EFSF guarantees, effective by summer

BRUSSELS - The euro zone is likely to agree on details of bolstering its bailout fund next week, and the reformed European Financial Stability Facility should be operational by the summer, euro zone officials said on Tuesday.

Euro zone leaders agreed on Saturday that the capacity of the European Financial Stability Facility should be raised to its full 440 billion euros from the current 250 billion, but left it up to finance ministers to work out how.

Eurozone agrees bail-out fund of 500bn euros

Eurozone finance ministers have agreed to set up a permanent bail-out fund for the region of 500bn euros (£420bn; $673.2bn).

The fund, which will be called the European Stability Mechanism (ESM) will replace the current 440bn euro European Financial Stability Facility (EFSF).