June 16, 2011
The euro zone should double the size of its bailout fund to €1.5 trillion ($2.127 trillion) to limit the fallout if Greece has to restructure its debt, a member of the European Central Bank's governing council said.
With euro-zone politicians and the European Central Bank still at odds over how to keep Greece afloat, a disorderly debt default has become an acute risk. Yields on two-year Greek bonds were hovering Thursday around all-time highs at 27.76%.
"I am open to all options that do not have consequences for the market, but you have to know you are skating on thin ice," Nout Wellink told Dutch newspaper Het Financieele Dagblad in an interview published Thursday. "If you are in danger of falling through the ice, you need to have a big safety net." Tobias Oudejans, spokesman for the Dutch Central Bank, confirmed the remarks, saying they reflect the bank's position.
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