EU Finance Ministers are meeting today in Copenhagen where they are expected to take steps to approve a plan to boost the Euro zone firewall rescue fund.
Yesterday it was reported that the Euro zone firewall rescue ceiling would be boosted to 940 billion euros ($ 1.3 trillion) by combining the EFSF (temporary) and ESM (permanent) rescue funds.
However, today there are reports that the rescue fund will be boosted to 800 billion euros instead of 940 billion.
German Finance Minister suggested that 800 billion euros will be sufficient as a ceiling for the rescue fund.
Today the Spanish government is expected to vote on arguably one of their leanest budgets in decades that consists of labor reforms, budget cuts in the upwards of 34 billion, and new tax increases.
Prime Minister Mariano Rajoy said that he is committed to reducing Spain’s deficit and fulfill his earlier promises to EU finance ministers despite Spain’s fragile economy and high unemployment level which is expected to keep growing higher in the midst of new budget cuts.