BERLIN (MNI) – The German government is in favor of massive
purchases of Italian government bonds on secondary markets by the ECB,
if this is necessary to stabilize the situation, the German weekly Der
Spiegel reported Sunday.
However, Chancellor Angela Merkel is against increasing the size of
the European Financial Stability Facility (EFSF), the magazine wrote.
“You cannot support an economy like Italy,” Der Spiegel cited a senior
government official as saying. The financial amount needed for that
would just be too big, the official argued.
According to the magazine, Merkel and Finance Minister
Wolfgang Schaeuble insist that Italy overcome its debt woes by cutting
expenditures and undertaking reforms.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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