Bloomberg News

Baroin Says ECB Role Bolstering EFSF Remains ‘Best Solution’

October 19, 2011

Oct. 19 (Bloomberg) -- French Finance Minister Francois Baroin said that Europe’s temporary bailout fund would be best enhanced with help from the European Central Bank, a position the ECB and German government continue to oppose.

“That’s the French position and we maintain it,” he told reporters as he arrived at an event today in Frankfurt to mark the conclusion of Jean-Claude Trichet’s term as ECB President. “The best solution is that the fund has a banking license with the central bank.”

Euro-area governments are looking for ways of containing the region’s two year-old debt crisis before leaders gather to discuss the matter in Brussels on Oct. 23. So far the Frankfurt- based ECB has resisted calls to make loans to the European Financial Stability Facility to enlarge its firepower from 440 billion euros ($607 billion).

“Everyone know the reticence of the central bank and everyone also knows of the reticence of the German position,” Baroin said. “For us it is and will remain the most effective position. The Americans do it, the British do it.”

--Editors: Craig Stirling, Fergal O’Brien

To contact the reporters on this story: Mark Deen in Paris at markdeen@bloomberg.net; Gabi Thesing in London at gthesing@bloomberg.net

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


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