Bloomberg News

Schaeuble Says Can’t Discuss Leveraging Until EFSF Approved

October 03, 2011

(Updates with additional comments starting in second paragraph,)

Oct. 3 (Bloomberg) -- German Finance Minister Wolfgang Schaeuble said euro-area countries should wait until changes to the European Financial Stability Facility are ratified before discussing an increase to its capacity.

“We will wait until the other countries that haven’t ratified it also do so,” Schaeuble told reporters in Luxembourg today. He said speculation about whether the bailout fund will need to be enlarged or leveraged “makes no sense” at this time.

Finance ministers from the single currency’s 17 members are gathered in Luxembourg to weigh how to step up their responses to Europe’s sovereign-debt crisis. Of those countries, 14 states including Germany have approved changes made in July allowing the bailout fund to purchase bonds on secondary markets and channel funds to banks.

Schaeuble called on Slovakia, which has yet to approve the deal, to “meet its responsibility” when its parliament votes on the package.

“I hope that they know that they are deciding not just for themselves, but also for all in Europe,” he said. “Solidarity in Europe is always about reciprocity.”

--Editors: Fergal O’Brien, James Hertling

To contact the reporter on this story: Jeff Black in Luxembourg at jblack25@bloomberg.net

To contact the editor responsible for this story: Craig Stirling at cstirling1@bloomberg.net


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