Germany open to raise crisis firewall to $930 billion
2012-03-26 17:31:23
Germany's chancellor says her country may be willing to temporarily increase the eurozone's bailout funds to €700 billion ($930 billion).
The 17-country eurozone is under pressure to raise its financial firewalls to boost confidence in struggling countries like Italy and Spain. It is currently debating how to move from its interim rescue fund to a new, permanent one.
Angela Merkel said Monday some €200 billion in rescue loans already promised to Greece, Ireland and Spain could run in parallel to a new €500 billion bailout fund until they have been repaid.
Without a policy change, the new European Stability Mechanism would only be allowed to give some €300 billion in new loans, since existing bailout commitments have to be subtracted from its overall capacity.