Monday, August 8, 2011

No Way Jose: Germany Nixes Larger Rescue Fund

The Wall St Journal reports that barely 12 hours after a reluctant European Central Bank breathed new life into the euro project, German politics dashed hopes that Europe would soon receive a bigger bulwark against a spreading government-debt crisis.

A spokesman for German Chancellor Angela Merkel, Christoph Steegmans, removed hopes of a more robust European Financial Stability Facility, saying the fund will stay as agreed at a July 21 European Union summit. "The EFSF will remain what it is, and keep the volume it had before July 21," Mr. Steegmans said at a regular government press conference….

Read more at http://online.wsj.com/article/SB10001424053111904007304576495921431361558.html?mod=googlenews_wsj

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