It will be within this year that the European Union is bound to apply the new rules for better Economic Governance, along with the detailed formulation and the approval of the permanent financial stability mechanism. On this last front however, there are already second thoughts. Olli Rehn, the EU Commissioner for the Economy and Finance, expressed his reservations, about “the size and the scope of not only for the current ones but also for the permanent European stability mechanism too", in an article published in the Financial Times last week. The idea is that the current financial stability mechanism may face insurmountable problems of adequate resources, if it will be called to rescue Spain and Italy. It is probably due to this possibility that Berlin and Paris are thought to press Portugal to ask for financial help. Firstly, because the sooner Portugal asks for help the lower the cost will be, due to the earlier application of the draconian fiscal measures. And secondly, just to have a clear idea what kind of resources are left after having taken care of the three small sinner countries, Greece, Ireland and Portugal.
For more: Euro gains on EU efforts - New Europe
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