FRANKFURT (MNI) – Germany’s Finance Minister Wolfgang Schaeuble
wants to limit parliamentary control over the European bailout fund, the
EFSF, the business daily Handelsblatt reported Wednesday, citing a draft
proposal by the minister.
According to the report, Schaeuble will call on the Bundestag to
delegate authority over future use of the fund’s new instruments. The
German Bundestag would only get to approve the basic agreement for the
EFSF’s new framework.
On July 21, Eurozone leaders decided to grant the fund new powers
including the right to recapitalize banks, buy bonds of member states in
the secondary market, and offer credit lines pre-emptively to countries
not under a bailout plan.
Schaeuble’s paper suggests that the EFSF’s board should be able to
draw up its own guidelines regarding pricing, political conditions,
conditions of use and documentation, Handelsblatt reports.
–Frankfurt bureau tel.: +49-69-720142. Email: jtreeck@marketnews.com
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