EU Summit: A permanent bail-out fund to be adopted, 2010, www.seetv-exchanges.com

Gathered in Brussels for the EU Summit (16/17), EU leaders are likely to agree to introduce a change in the Lisbon Treaty to enable for the establishment of a permanent eurozone bail-out fund, "the European Stabilisation Mechanism". This new mechanism will evacuate some of the risks away from taxpayers on to banks and investors, by allowing euro countries to restructure their debts and investors to face "haircuts". However, major uncertainties remain in this the crisis mechanism, and it is doubted that the current bail-out package will be sufficient to ensure market stability to the most vulnerable countries, such as Portugal or Spain, that are facing increased pressure.  
 
VIDEO's DESCRIPTION

• Interview with Zsolt Darvas, Senior Economist at Bruegel, Brussels-based think-tank on EU economic policies. In English, 4/3.

Darvas comments on 1/ The EU Summit, its most likely upcoming conclusions, the need for an permanent ESM but also the weaknesses of the proposed ESM, and his recommandations on additional measures; 2/ The need to introduce the "hair-cut" in the system; 3/ The risks of future bail-outs of Portugal, Spain and Belgium; 4/ The "good examples" of the Eurozone.

Also Available on the eurozone crisis:

• Interview with Carsten Brzeski, Senior Economist at the bank ING, In English, 4/3. WATCH
• Interview with Fabian Zuleeg, Chief Economist at the European Policy Center (EPC), In English, 4/3. WATCH

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