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EU Emergency Measures

On 9 May 2010 the 27 member states of the European Union agreed to create the European Financial Stability Facility (EFSF), a legal instrument aiming at preserving financial stability.
Devised special purpose vehicle

Creation of European Treasury for tax policy oversight and government spending coordination of EU member countries European Commissioner for Economic and Financial Affairs, Olli Rehn, called for "absolutely necessary" deficit cuts by the heavily indebted countries of Spain and Portugal

The ECB has announced a series measures aimed at reducing volatility in the financial markets and at improving liquidity.
First, it began open market operations buying government and private debt securities. Second, it announced two 3-month and one 6month full allotment of Long Term Refinancing Operations (LTRO's). Thirdly, it reactivated the dollar swap lines with Federal Reserve support.

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