EU rescue funds deal a game changer says Eamon Gilmore
Published 29/06/2012 | 08:54
A DECISION by euro zone leaders to allow rescue funds to lend directly to recapitalise banks is a "major game changer" for Ireland and will ease its path back to financial markets, Tanaiste Eamon Gilmore said today.
"When the details are worked out between July and the end of the year, it will have a real impact on our debt level and will greatly improve our ability to get back into the market and not to need a second bailout," Eamonn Gilmore told RTE’s Morning Ireland.
Meanwhile, the Euro STOXX 50 volatility index, Europe's main gauge of anxiety known as the VSTOXX, sank 10 percent to a one-week low of 25.25 on Friday, as investors' appetite for risky assets recovered following a deal at the EU summit.
European Union leaders agreed a plan to allow euro zone rescue funds to be used to stabilise debt markets and directly recapitalise banks, sending the euro zone's blue chip Euro STOXX 50 index up nearly 3 percent while Italian and Spanish government bond yields fell sharply.
The lower the volatility index, based on sell- and buy-options on the Euro STOXX 50 stocks, the higher investors' appetite for risky assets.