World Races to Avert Crisis in Europe

Immediately after the announcement, the European Central Bank said it is ready to buy euro-zone government and private bonds “to ensure depth and liquidity” in markets, and the U.S. Federal Reserve announced it would reopen swap lines with other central banks to make sure they had ample access to dollars.

The money would be available to rescue euro-zone economies that get into financial troubles. The plan would consist of €440 billion of loans from euro-zone governments, €60 billion from an EU emergency fund and €250 billion from the International Monetary Fund.

The European Union agreed on an audacious €750 billion ($955 billion) bailout plan in an effort to stanch a burgeoning sovereign debt crisis that began in Greece but now threatens the stability of financial markets world-wide.

European Markets Surge

European stocks surged Monday, as investors cheered a €750 billion ($954.83 billion) rescue package intended to stabilized the euro and prevent the Greek fiscal crisis from spreading to other member countries.

The news also sent the euro sharply higher against the dollar, but the single currency retreated from its highs later in the session. Oil prices rose, while gold fell.