Plan to fix European debt crisis announced

World stock markets and our loonie are higher today, following word that the European Union and the International Monetary Fund have pledged nearly 1 trillion dollars to defend the euro.

The deal came out of a 14-hour meeting on the weekend in Brussels, Germany.

Central Banks in Canada and the U.S. are also participating in the package.

The Chief Economist at RBC Global asset management says the 3-year deal will give Greece and other European nations time to get their financial house in order.

Patricia Croft tells 660News more than half of the cash will be used to buy up goverment bonds and bad private bank debt.

Croft says while consumers, investors and traders are breathing a sigh of relief today, eventually that money will have to be paid back and that will result in reduced global economic growth.

She says while the Greece debt crisis, which sparked the latest market sell-off appears to be fixed, the story is far from over and many other chapters still need to be written.

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