The Son of Finance of the Great Age

  Chapter 778 The situation is critical

  Regardless of whether the news is true or not, Spain’s very pessimistic data is in front of everyone, with piles of bad debts in the banking industry, unabated government spending, rising government bond yields, and high unemployment across the country. All signs indicate that the Spanish government is on the verge of crisis, and this bomb may explode at any time.

Most importantly, the power of this rumor is not only to reveal that Spain may be in crisis, but also to wake up investors in the market. Countries such as Portugal and Ireland are in a similar situation to Spain at present, that is, it is possible All are lost.

Today's ECB may be able to save Greece, but if Spain applies for rescue to them again, and then Ireland and other countries also reach out to ECB, the amount of money to save these countries will reach an astronomical figure. Is this ECB able to afford it? Yes, whether national parliaments such as France and Germany will agree to pass such a rescue plan, and other practical issues have become lingering dark clouds in investors' minds.

  Whether the euro zone will collapse or not has never become a question for investors to consider.

   Panic quickly begins to spread.

  Although the trading time of the stock market has passed, it does not prevent investors from making the decision to flee and retreat.

The first to react to the negative news was the euro, which plunged 0.0216 against the U.S. dollar on the day, or 1.77%, in the non-stop OTC market , setting a new low for this period of time, and also a new low for the euro-dollar exchange rate in the past five years.

  In the United States, after opening higher, the Dow Jones index quickly turned down and fell as high as 200 points at one point. Although the decline narrowed later, it still fell by 139.9 points. On the other hand, the VIX index, which reflects investors' willingness to avoid risks, has continued to rise day after day. This reflects the growing concern in the market that the European debt crisis can be successfully resolved.

   Not only the United States, but even Japan in the Far East has been affected. On the same day, EUR/JPY fell 2.79, or 2.48%. Although it did not hit a new low in the short term, it also swallowed up the rising momentum that had been hard-won recently.

In Spain, which bears the brunt, there has been an unprecedented frenzied flight of funds. Although the local banks in Spain have been closed, investors who have become frightened still use banks that are open around the world to exchange their euros regardless of the cost. , hoping to escape from Spain as soon as possible.

  The same scene also happened in Italy, Ireland and other places.

   That night, when the news reached the headquarters of the ECB, the members of the European Commission couldn't sit still, they knew exactly what this wave of market meant.

   "Damn, we have to do something!"

  In the office in Brussels, the news kept coming. Although it was late at night, the distraught Van Rompuy was still sleepless, pacing back and forth in his prime minister's office, chanting non-stop.

As the current rotating president of the European Commission, Van Rompuy took office on January 1, 2010. Originally, he only wanted to spend his two-year term smoothly. To the cusp.

  Fan Rompuy is 63 years old this year, his hair has become pale and bald, forming a strange shape with a deep recess on his forehead. He often wears a pair of half-rimmed eyes and has a half-smile expression on his face, which looks very friendly. The reason why he was able to become the first President of the European Council, in addition to his unique ability in economic affairs, Van Rompuy's ability to deal with conflicts between political parties has also impressed many European leaders.

  Established in 1974, the European Council was originally a position where leaders of various countries took turns on a half-yearly basis. Later, due to the continuous expansion of the euro zone countries, this method was no longer suitable for the rotation system, so it was changed to an election system, and each chairman will get a 2.5-year term.

  Van Rompuy became the first elected president of the European Council.

  The European Council, the highest decision-making body of the EU, is composed of the heads of state of the EU member states, the president of the European Council and the president of the European Commission. It mainly determines the major policies of the EU, especially foreign policy. Among the three parties, because the European Council can decide the candidate for the European Commission President, some people call the President of the European Council the "President of Europe".

   But obviously, this "president" is not easy to be!

   "Another €15 billion out of Spain!"

Just when he was anxious like an ant on a hot pot, his secretary did not forget to come in to add trouble, "From ECB monitoring, they said that in the past three hours, more than 50 billion euros of funds have been transferred from the Spanish banking system." This figure could be extended to 80 billion to 100 billion euros by tomorrow morning!"

   "Damn, what the **** is Madrid doing?"

  Fan Rompei lowered his head and cursed ferociously. When he raised his head again, he still had a gentle expression, "Pick Barroso for me, right now!"

  José Manuel Barroso, the current president of the European Commission, is a Portuguese.

  54-year-old Barroso, born in Lisbon, has a legal background, and officially served as the Prime Minister of the Portuguese government in 2002.

  He is not tall, with a slightly fat body, and his hair is always combed to the right, which looks like a layer on his forehead from a distance. Fluency in foreign languages ​​combined with excellent diplomacy led him to be elected European Commission president in 2004, now serving his second term.

  The responsibility of the European Commission is the executive body of the European Council, responsible for the specific implementation and implementation of EU legal conditions, as well as the implementation of budgets and projects. To use a simple analogy, if the European Council makes a plan to aid Greece, then the European Commission will be the specific implementation agency.

   "José, the problem is serious!"

  As soon as the call was connected, Van Rompuy said in fluent Portuguese, "Not only the foreign exchange market, but also funds are still fleeing frantically, including Spain and Portugal."

   "ECB numbers?"

  Barroso on the phone was a little drowsy at first, but he woke up immediately after hearing Fan Rompuy's words, "Herman, what happened?"

"You do not know?"

Van Rompuy was very surprised by Barroso's answer, but he didn't have time to question why the other party was so closed. Instead, he explained the current situation bluntly, "There are rumors in the market that Spain will ask the European Council for help, and I hope they can Help the Spanish government to tide over the difficulties. In this case, the markets that are still open have plummeted, and the phenomenon of capital flight in Spain has also begun, and these are all data from the ECB.”

   "The situation is very serious, Jose!"

  Fan Rompuy added at the end, "If the situation is allowed to develop, Spain will soon ask the ECB for help, and you know exactly what their situation is now!"

   "This is a baseless rumor!"

Barroso concluded without hesitation, "At least on my side, I have never received any official documents from the Spanish government, or heard relevant news from their foreign minister. I understand, this is released by speculators." Rumors, the purpose is to cause panic in Spain's domestic funds!"

   “Not just Spain, but Italy, Ireland and some other countries.”

Seeing that Barroso hadn't realized the seriousness of the problem, Fan Rompuy became a little angry, interrupted the other party's speech unceremoniously, and reprimanded him bluntly, "Don't you understand what's going on? If If we fail to take active measures, there will be disastrous consequences when the market opens tomorrow. If it is delayed for two days, the whole thing may go out of hand. If it is a week, then the whole of Europe may be over!"

   "How is the discussion about aiding Greece and setting up an aid fund going?"

   After losing his temper, Fan Rompuy slowed down and continued to ask, "Up to now, in addition to aiding Greece, we also need to let investors all over the world see how much control our European center has over the whole matter!"

   "Things are not going well!"

   Barroso curled his lips and replied with some helplessness, "For some countries, they have not yet reached an agreement in Congress. If the negotiation continues according to this process, it is estimated that it will not be completed in two weeks."

   "No, we must reach an agreement tomorrow!"

Fan Rompuy rebuffed straight away, "I will call the presidents of Germany, France, and the IMF. Don't worry about this, I will do my best and they will also express their support. You will take over other aspects. This matter must be resolved." Quick. I strongly recommend that you don't sleep today and start a meeting with them immediately."

"In addition, in the name of the President of the European Council, I will send an informal invitation to the heads of state, and let them participate in an informal summit of European heads of state tomorrow, focusing on the current situation and giving the market support and confidence! "

   "European summit?"

   Barroso was taken aback, and only then did he realize the true seriousness of the situation.

  As the chairman of the European Council, Van Rompuy has the right to hold an informal European summit informal agreement in the first and second half of the year, which is commonly known as the European summit. But if there are no major issues, this summit generally does not need to be held.

  So when Van Rompuy proposed to hold a European summit, Barroso realized the real seriousness of the situation.

   "In addition to reaching an aid plan tomorrow, which must be approved by the parliaments of various countries, we will also formally negotiate with the United States as a whole in Europe!"

  As for the conspirators behind the whole incident, the high-level European leaders are well aware of this, but others are using a conspiracy. Although they are very dissatisfied with this, they are not good at pointing fingers, after all, the rules are public. But to untie the bell, one must tie the bell. As long as the United States lets go, I believe their capital will be restrained a lot.

  Because the whole thing is not a good thing for the United States. First of all, the rise of the dollar hurts their exporters. In addition, the economic data of the United States has been released one after another, all of which have exceeded market expectations. In this situation of recovery, they naturally do not want to see troubles for their own recovery caused by the European debt crisis.

  Fan Rompuy quickly grasped the essence of the matter.

   “Also, hurry up and get the Spanish government to issue a statement telling the market that the request to the ECB for help is purely false!”

  Once he sorted out his thoughts, Fan Rompuy's countermeasures emerged continuously from his mind, "We must first stabilize the confidence of the market, and then we can solve these problems!"

   "Is ECB going to do something?"

  Until this time, Barroso had the opportunity to speak, "The IMF and European countries each contribute part of the rescue plan of 750 billion euros. But if this figure cannot solve the market crisis, then..."

  He didn't continue to speak, but what he wanted to express had been clearly captured by Fan Rompuy.

  If this plan cannot solve the European debt crisis, then the ECB will be pushed to the foreground. Whether it is buying bonds in the debt crisis or implementing the QE plan, they need to enter their consideration.

"this…"

  Fan Rompuy hesitated for a moment, and finally said, "I will communicate with them. At worst, let them consider buying these bonds first. In any case, we still need the consent of Paris and Berlin!"

   Thanks to book friends such as Manqiangchunsegongqiangliu, DingWang, Sudaoduanyou, etc. for voting monthly! Thanks to Nanquan 99 and Electromagnetist for their continued rewards! With everyone's active support, I hope this month will be a good start again. This month, the author only hopes to see a few monthly tickets every day. It can be very lively, but don't be too deserted. At the same time, I hope more books Friends can pay attention to and support this book, and look forward to the results of this book getting better and better~

  (end of this chapter)