BERLIN (MNI) – The German government still sees no need to increase
the size of Europe’s planned permanent bailout fund, the European
Stabilisation Mechanism (ESM), beyond the earmarked E500 billion, a
spokesman said Friday.
“The stance of the German government has not changed,” spokesman
Steffen Seibert said at a regular government press conference here.
He noted that tensions on Eurozone bond markets have eased and
yields of government bonds of the fiscally ailing Eurozone heavyweights
Italy and Spain have recently declined.
Seibert reaffirmed, though, that the German government is still
willing to speed up the funding for the ESM. “We are ready for a strong
signal,” he said.
The German government also sees no need to lower the rates on the
loans granted by the EU to Portugal and Ireland, Seibert said. Greece,
which will see its rates being lowered, is a “singular case,” he argued.
The German government expects the new Greek aid package to be
approved in a parliamentary vote on Monday, the spokesman said.
The main opposition parties have already signaled that they will
vote for the aid package.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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