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FX.co ★ Default not an excuse for idleness

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Forex Humor:::2013-06-17T12:13:00

Default not an excuse for idleness

Many of the European Union countries consider that the most reliable way for budget replenishment is not hard working and economizing, but the financial aid from the European Financial Stability Facility funds. The local governments are trying to falsify the real economic indicators data hoping to get the poor country status and further welfare payments from the governmental and non-governmental organizations as well as from the ECB. Since the European Central Bank is reinforcing the requirements for the financial assistance and does not regard the risk of default as a weighty reason to save certain countries from bankruptcy. “We will not intervene to ensure the solvency of countries that can’t deal with money,” President of the ECB Mario Draghi said in his interview to the Germany's public broadcaster ZDF. He also noted that the ECB could implement the rescue program, first of all, in order to safe the euro and to provide stability in the whole euro area. Moreover, Mr Draghi said that the German taxpayers' risk of participating in this scheme is quite low in comparison with the last year. To take part in this benefit program, the EU members need to apply to the European Financial Stability Facility, which will properly and individually process each application.

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