BERLIN (MNI) – German Chancellor Angela Merkel on Monday reaffirmed
her opposition to an increase of the size of Europe’s bailout funds.
“The federal government sees currently no need for a debate about
an increase of the capitalisation of the EFSF and the ESM,” Merkel said
in a government declaration in the German parliament ahead of a vote on
the second aid package for Greece.
“The refinancing conditions for Italy and Spain have improved
recently thanks to the reform efforts there,” the Chancellor remarked.
Merkel reaffirmed, though, that the German government is still
willing to speed up the funding for the ESM if the other Eurozone
members go along with it. This will be a topic at the EU summit later
this week, she said.
“Concretely, I can imagine to pay half of the German part [of the
ESM funding], that means E11 billion, already this year and the second
half next year,” Merkel said.
Overcoming the sovereign debt crisis will still take a long time,
she cautioned, warning against believing that it could be solved
with one big bang.
The Chancellor argued that there was no alternative to the second
Greek aid program, given that the risks from a disorderly default of
Greece would be incalculable.
“The Eurozone member states will make their contribution by
supporting the program with up to E130 billion,” Merkel said. “For the
federal government it is indispensable that the IMF will continue to
make a significant contribution,” she stressed, referring to the
International Monetary Fund.
The Greek aid motion expected to be backed by a large majority at
today’s vote in the German parliament given that the main opposition
parties, the center-left SPD and the ecologist Greens, have said they
will vote together with the government coalition for it.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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