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Eurointelligence Daily Briefing: Portugal is to apply for EU financing after all (Google link)
The European Commission had received the request for financial assistance from Portugal; Socrates explained his political U-turn saying that the risks to the economy had now become too great to do it alone; Portugal's last attempt to stem financing needs through short term bond auctions ended in painfully high prices, 5.12% for 6-month and 5.9% for 12-month T-bills; The deal parameters will be discussed at the eurozone finance ministers meeting this Friday; It is yet unclear how fast the deal can be negotiated during the election campaign; ECB is expected to decide on a pre-announced 25bp rise in repo rates to 1.25% today; Deposit rates are likely to be left at 0.25%, effectively neutralising the rise in repo; Germany's economic research institutses predict 2.8% growth in Germany for 2011; Commerzbank plans to raise €8.25bn by selling new shares to pay back public aid; Patrick Honohan, meanwhile, suggests a risk sharing scheme with bond yields linked to GNP growth.

Economics is politics by other means
by Carrie (migeru at eurotrib dot com) on Thu Apr 7th, 2011 at 04:02:08 AM EST
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