October 26, 2011
Chancellor Angela Merkel of Germany, in a plea for domestic support hours before European leaders are scheduled to hold a crisis summit, beseeched lawmakers Wednesday to back measures to expand the firepower of the euro area bailout fund, even though doing so might be risky.
The world is looking at Germany, whether we are strong enough to accept responsibility for the biggest crisis since World War II,” Mrs. Merkel said in an address to the Bundestag, the German Parliament, in Berlin. “It would be irresponsible not to assume the risk.”
Mrs. Merkel also called for a revision of the European treaty to strengthen the union’s ability to police fiscal discipline among members. She argued for stronger regulation of banks, and swift action to get institutions to build up their capital reserves. She implied that investors will have to accept a 50 percent reduction in the value of Greek bonds. And Mrs. Merkel said that Europe should be ready to accept advice and financial aid from the International Monetary Fund.
“Many questions require not only a national and European solution, but also an international solution,” Mrs. Merkel said. She praised Christine Lagarde, managing director of the I.M.F., for her role in the crisis.
More
No comments:
Post a Comment