Minimum Agreement on the Growth Pact

25^th June 2012

On 22nd June the leaders of Germany, Spain, France and Italy met in Rome in a bid to agree on the European crisis before the European Council on 28th and 29th June. They agreed on the growth pact. The plan is due to total 130 billion euros. They also spoke in support of the introduction of a tax on financial transactions between voluntary countries. On the issue of strengthening Monetary Union there is still disagreement. Although everyone supports the introduction of banking union and even budgetary union the means to do this are still unclear. The German Chancellor believes that the recapitalisation of the banks via a rescue fund is not a viable long term solution. She is against euro bonds whilst the French President is requesting their introduction within the next 10 years.

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