Bloomberg News

Frieden Says EFSF Leveraging Goal ‘Very Difficult to Reach’

November 29, 2011

(Adds comments on IMF, ECB in fourth paragraph.)

Nov. 29 (Bloomberg) -- Luxembourg Finance Minister Luc Frieden said the goal of leveraging the European Financial Stability Facility to boost its capacity to 1 trillion euros will be “very difficult to reach” given current market conditions.

“It will be very difficult to reach in view of the changed market circumstances the initially envisaged leverage goal, but we have to listen to the CEO of the EFSF before we can take a decision on this,” Frieden told reporters today in Brussels. “The EFSF alone will not be able to solve all the problems. We have to do so together with the IMF and with the ECB in the framework of its independence.”

“We need stability in euro area, that’s why we must take action together with the ECB, the IMF and a stronger EFSF,” Frieden said.

“You have to look at all options, but I think there are simpler ways to give money to the euro zone via the IMF with the approval of all member states than via the ECB,” Frieden said. “Everybody’s competencies should be respected and not mix them.”

--Editors: Jones Hayden, Patrick Henry

To contact the reporter on this story: Josiane Kremer in Oslo at jkremer4@bloomberg.net

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


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