Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

UPDATE 1-German FinMin sees no need to boost EFSF

Published 01/17/2011, 02:52 AM
Updated 01/17/2011, 02:56 AM

* German FinMin calls Barroso's proposal "isolated"

* FinMin says proposal only makes matters more complicated

* Says Portugal doesn't want or need bailout

* German govt in agreement there is no need to act now

(Adds details)

BERLIN, Jan 17 (Reuters) - Germany again ruled out bolstering the size of the EU bailout fund as proposed last week by European Commission President Jose Manuel Barroso.

"With such isolated approaches, the situation doesn't get any easier, it only gets more complicated," Finance Minister Wolfgang Schaeuble told German radio Deutschlandfunk on Monday prior to a meeting of euro zone finance ministers.

"I don't know what moved him to propose that on the day that Portugal had to go to the markets -- after all I believe he was at one time prime minister of Portugal."

Last Wednesday, Barroso called for a summit decision in February on increasing the effective lending capacity of the European Financial Stability Facility (EFSF) and making it more flexible. [ID:nLDE70B1EJ] [ID:nWEA0908]

"Portugal doesn't want or need a bailout at all. There's enough funds for Ireland, and the rest is speculation that is not being stirred up by anyone," Schaeuble said.

"The rules agreed on remain in force and whoever wants to change them ... has to get the laws changed by the German Bundestag -- just as with the other national parliaments. This should be considered more often by those in charge in Brussels."

He also dismissed media reports that there was no clear position on the matter within Chancellor Angela Merkel's centre-right government, and denied that French President Nicolas Sarkozy was in favour of an increase in the fund.

"That's naturally the usual incorrect reporting -- we are all in agreement that there is no need to act at present... and Chancellor Merkel and President Sarkozy have said very clearly they oppose an increase in the bailout fund," he said.

(Reporting by Christiaan Hetzner; Editing by John Stonestreet)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.