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House of Representatives agrees on EU guarantee package

News item | 12-05-2010

The guarantee package strengthens the financial stability of the euro zone and the confidence in the euro. The Dutch share in this package, guaranteed by the euro countries, is at most € 26 billion of the overall € 440 billion.

Initially € 60 billion, to be used for loans to countries in financial difficulty, will be made available through the European budget. The member countries will issue a guarantee for this amount based on their European budget shares. On top of that, the euro countries guarantee an amount of € 440 billion. Decisions on how to use the € 440 billion are to be taken unanimously by the member states. The House of Representatives agreed to this on 11 May. Of the total amount of 500 billion the IMF is expected to contribute about € 250 billion. To euro countries applying for the support scheme strict conditions apply, in which the IMF has an important say.
 
Furthermore, it was agreed that all member states will take the measures required to sort out their national budgets and to ensure that budget agreements are better adhered to in the future. Portugal and Spain have already promised to take additional measures in 2010 and 2011 to reduce their deficits. On 9 May the EU finance ministers reached agreement about the package.