Yahoo News: Hopes that European leaders may be about to strengthen measures aimed at dealing with the govermment debt crisis contributed to a strong euro rally Thursday as well as big declines in borrowing costs for financially troubled Portugal and Spain. Follow up:
Follow up:The sense that European Union leaders are ready to respond more quickly to events, following a year of procrastination and indecision, has been stoked by talk that Germany is now ready to back an increase in the size and powers of Europe's bailout fund, and to support a more active role from the European Central Bank.
Pledges of support from Japan and China have helped too.
No one is saying that the crisis is over, or that Portugal isn't going to join Greece and Ireland in needing an expensive bailout, but there has been a change of mood in the markets over the past few days. It may have to do with signs that Europe's policymakers have learned from their mistakes — particularly, the delays over the Greek crisis in the first half of 2010 — and are ready to be more proactive in dealing with the debt problems. Read more at Yahoo News.....