Monday, December 6, 2010

Germany Resists Bid to Expand Rescue Fund

Wall Street Journal
December 6, 2010

Euro-zone leaders will consider boosting their emergency lending facility for struggling member countries this week, even though Germany remains staunchly opposed to the idea.

Investors in recent weeks have pushed yields on European sovereign debt higher and the euro lower over concerns that the €750 billion ($1.01 trillion) worth of funds set up by the European Union and the International Monetary Fund may not be enough to tackle the euro area's sovereign-debt problems.

German Chancellor Angela Merkel said Monday she sees no need to increase the size of the current financial safety net for troubled euro-zone member states. Ms. Merkel said that so far, only Ireland has asked for aid from the facility, and the fund would be more than sufficient for Ireland.

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