MEXICO CITY (MNI) – German Finance Minister Wolfgang Schaeuble on
Saturday downplayed expectations for any decision on a larger Eurozone
bailout fund at the upcoming EU leaders summit and refrained from
signaling German support for boosting the fund.

“The heads of state and governments in December decided that they
will review whether the sum [available to the rescue fund] is sufficient
in March,” Schaeuble said during a press briefing during the meeting of
G-20 finance ministers and central bankers.

He stressed that March had 31 days, thus signaling that no decision
should be expected for the upcoming European leaders summit on March
1-2.

Pressed on Germany’s position on combining the temporary rescue
fund with its permanent successor to boost it to E750 billion, ,
Schaeuble merely reiterated that “the question will be decided in
March.”

The comments come following media reports that Germany is now ready
to support a larger European firewall.

The outcome of this review in March “will also depend on the speed
with which the capital will be paid into the ESM,” Schaeuble said. He
said that there has been some tendency “to say, ‘let’s not do it in five
tranches but in two tranches.'”

An early capitalization of the ESM could make boosting the total
sum less pressing. In earlier comments in Mexico, Schaeuble did not
sound as though Germany would be quick to boost the fund.

“Should we make collectivise sovereign debt in the Eurozone? Should
the European Central Bank print money to finance the member states’
budgets? Should we make the firewalls ever bigger? The answer is an
emphatic no,” Schaeuble said in a newspaper contribution.

Schaeuble also said Saturday that during the G-20 meetings he had
had “intensive discussion” about the state of the Eurozone debt crisis.
“I believe you can conclude that all participants view very positively
what we have come up with in Europe. There is no deviating assessment
that we are not on the right path with our stabilization measures.”

“We have also received great support for the second Greek
package…I expect that on Monday we will gain the necessary support in
the Bundestag,” Schaeuble said.

–Frankfurt newsroom +49 69 72 01 42; e-mail: jtreeck@marketnews.com

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