European Stability Mechanism

European Union leaders are expected to clear the way for releasing 31.5 billion euro (USD 41 billion) in urgently-needed financial assistance for debt-stricken Greece at their two-day summit which opens in Brussels today.

Euro faces 'exit of the strong'

During the summer there were a number of developments justifying optimism about the euro's survival chances. Since late September, however, the euro area's political leaders have done all they can to dash these hopes.

Spain's reluctance to seek bailout justified: OECD's Gurria

Spain's reluctance to ask for a bailout was justified, said Angel Gurria, the secretary general of the Organization for Economic Cooperation and Development (OECD), as there were signals that any calls for help by Madrid may be rejected.

ESM may not be operational until next year: Lloyds Bank

European Stability Mechanism (ESM), which is Europe‘s permanent rescue facility, is expected to come into force on October 8. Trevor Williams, Lloyds Bank says it probably is not going to start until next year.

Nikkei drops before German ESM ruling, Fed meeting

Japan's Nikkei average sagged on Tuesday as investors cut their exposure to exporters and riskier stocks, awaiting a ruling from German's constitutional court on the legality of the European bailout fund and the US Federal Reserve policy meeting this week.

Euro near 2-yr lows, awaits German verdict on bailout fund

The euro steadied in Asian trade on Wednesday but hovered near two-year lows against the dollar as investors fretted about the outcome of a German court hearing on the euro zone bailout fund, the latest obstacle to efforts to beat the region's debt crisis.

European shares gain on Spanish deal

Limited progress at a euro zone finance ministers meeting left the single currency near a two-year low on Tuesday, while oil fell USD 2 a barrel after a slowdown in China's imports fuelled anxiety about the global economy.

Financial 'armageddon' will happen despite EU deal: Rogers

Even as markets cheered the agreement by European leaders to allow the direct use of the bloc's bailout funds to recapitalize struggling banks, well-known investor Jim Rogers told CNBC the move does nothing to help solve the region`s biggest problem, which is its high debt levels.

See 20-40% returns from Indian equities in 6 months: Garner

Jonathan Garner of Morgan Stanley believes that the emerging markets are discounting a recession scenario at the moment.

See more short term policy action from EU summit: Unicredit

According to Marco Valli, the chief eurozone economist at Unicredit, the market should not hold high hopes for any steps towards fiscal or banking integration from the upcoming European Union summit.

EU may avoid private creditor issue in Spain rescue

The euro zone's temporary EFSF (European Financial Stability Facility) bailout fund, rather than its permanent ESM (European Stability Mechanism) facility, could fund Spanish bank recapitalisation to avoid investor concern over the ESM's preferred creditor status, a senior euro zone official said on Monday.

EU's Rehn, France back lifeline for banks

France and the European Commission signalled their support on Monday for an ambitious plan to use the euro zone's permanent bailout fund to rescue stricken banks, as European officials try to reassure investors they can contain an escalating crisis

Europe mulls major step towards 'fiscal union'

When Jean-Claude Trichet called last June for the creation of a European finance ministry with power over national budgets, the idea seemed fanciful, a distant dream that would take years or even decades to realise, if it ever came to be.

Euro bailout fund should be used for banks: France

French Finance Minister Pierre Moscovici said on Sunday that it would better to recapitalise troubled European banks using the ESM bailout fund than use government money.

This summer an 'Eerie Echo' of pre-Lehman: Zoellick

The summer of 2012 is looking like an 'eerie' echo of 2008 but euro zone sovereign debt has replaced mortgages as the risky asset class that markets are anxious about, said Robert Zoellick, President of the World Bank.

Euro zone may raise bailout fund capacity to 700bn euros

The euro zone may raise the combined lending power of its bailout funds to close to 700 billion euros from 500 billion, in a trade-off between German opposition to committing more money and the need to calm markets, euro zone officials said.

Austerity bill passing a lifeline for Greece: EU's Barroso

Jose Manuel Barroso, president, EU Commission tells CNBC-TV18's Shereen Bhan that he agrees the austerity measures imposed on the Greek people will be painful to pursue.

Greek solution close; room for global liquidity rally: HSBC

Philip Poole, global head of emerging markets at HSBC spoke to CNBC-0TV18 about the situation in Greece and the way ahead for global markets that are rallying on liquidity injection.

EU leaders agree on permanent bailout fund

EU leaders reached agreement at a summit on Monday on the introduction of a permanent euro zone bailout mechanism from July 2012, with a treaty governing the fund to be signed at a later date.

Merkel's post-summit glow fades in Germany

Praise for Angela Merkel's tough negotiating skills in forcing through a deal on European budget rules has given way to warnings that the chancellor risks using up her political credit among Germans.

Eye on Europe: Experts decode the EU Summit for global mkts

On December 9, the 27 member eurozone made a brave attempt to ensure that the euro will survive. Manoj Pradhan, Global Economist with Morgan Stanley; Jahangir Aziz, economist at JPMorgan and Sanjay Mathur, economist at RBS discuss the impact of the two-day Summit on global markets.

Eurozone may drop private sector from ESM bailout fund

Euro zone member states, mindful of flagging market confidence in euro zone debt, are considering dropping private sector involvement in the region's permanent bailout fund due to come into force in 2013, four EU officials said on Friday.

German govt rejects reports of increase in size of EFSF

German Finance Minister Wolfgang Schaeuble has rejected reports that the European Union and the International Monetary Fund (IMF) are working on plans to boost the size of the euro zone's financial rescue fund to support a partial debt default by Greece.

EU agrees 700 bn euro bailout plan for debt-ridden nations

The European Union on Tuesday agreed to spread a massive 700 billion euros permanent financial safety net to bailout euro zone nations facing liquidity crisis and thereby stave-off future sovereign debt crunch endangering their stability.

S&P cuts Portugal credit rating to just above junk

Standard & Poor's cut its credit rating on Portugal by one notch on Tuesday to just above junk status, its second downgrade in less than a week as the debt-ridden country grapples with a political crisis.