Will they, wont they? The “issue” from the G20 summit is will Euro 600 or 700 million be available from the bail out fund to buy up second hand Italian and Spanish bonds in the markets, so these two countries can sell new bonds at a higher price?
You might have thought the prior issue was how do they borrow all the money for the bail out fund in the first place? All the Euro states are borrowers for additional spending. You also have to remember that if they spend the bail out fund on buying second hand bonds, the money is not there to bail out banks or states that have run out of money. The bail out funds themselves will partly be provided by Spain and Italy. What curious webs they weave.