Angela Merkel is obviously not as much of an “iron lady” as Margaret Thatcher was when she said, “this lady is not for turning”.
It took a major shift in policy for the German chancellor to decide that it was only right for the stronger economies in Europe to support the weaker ones without making stringent conditions that countries like Greece have found unacceptable.
The proposals are to use two rescue funds - the 500 billion Euros of the European Stability Mechanism (ESM) and the 250 billion Euros of the European Financial Stability Facility (EFSF) to buy bonds from those countries that are struggling to sell i.e. Spain and Italy.
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