EU's Defense Plan for Euro

According to AP, EU ministers have agreed on the Euro "defense package", and it is bigger than rumored.

Here's the details:

- 60 billion euro (US$76 billion) from the European Commission
- 440 billion euro (US$560 billion) bilateral backing from eurozone countries
- 220 billion euro (US$280 billion) from IMF
- Grand total: 720 billion euro (US$917 billion)

The entire EU countries, even those not using euro as their currency, will have to contribute (the EC part). The IMF members are on the hook for the IMF portion.

The Asian markets are responding favorably so far, even though they will be on the hook to rescue euro. If the IMF quota is used to determine the contribution, Japan will be asked to pay over 13 billion euro (US$17 billion), and China 8 billion euro (US$10 billion).

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