The EU new economic governance package

Sat, Sep 17 2011, 17:18 GMT | FXstreet.com

FXstreet.com (Buenos Aires) – Today, the finance Ministers of the euro zone had reached an agreement in relation to a new economic governance package, one more step forward in the path of saving the area. The package that includes five regulations and one directive, aims to improve the budgetary discipline in the member States, and strengthen the stability of the region’s economy.

The package includes new criterion on debt and deficit definitions, sanctions for countries that don’t fulfill the compliance requirements to be applied at an earlier stage, and improved transparency in the decision-making process in the EU economic governance, among others.

Although positive, as the EU is showing investors that they are ready to act unequivocally, one should wonder why it took so long. The banking crisis has been growing for almost 2 years already, while the ECB ignored it most of the first one. Will investors be actually ready to trust the euro after this?

Source: FXstreet.com

 

We would have to see the details of this package and what it means.... Does it mean a mark to model type dictions that were provided to the markets... we doubt... but Ben is meeting as well on Monday and Tuesday... So lets wait and watch and be light on trading positions.... Anyways Tuesday is a turndate....