Dec. 1 (Bloomberg) -- Germany proposed that each euro-area country set up a national fund to pay down its debt as a possible way to boost market confidence in the joint currency.
“That way, it would be verifiable year by year that member countries of the euro zone actually reduce their debt to 60 percent of gross domestic product over a span of 20 years,” Finance Minister Wolfgang Schaeuble told reporters in Berlin today. Channeling government revenue into such a “special fund” would be “confidence-building” amid the debt crisis.
Chancellor Angela Merkel’s government is considering presenting the proposal to its euro-area partners at the Dec. 9 meeting of European leaders in Brussels, Schaeuble said.
Euro-area rules set a debt limit of 60 percent of GDP for member countries.
--Editor: Jeffrey Donovan
#<139837.62198220.127.116.11.14779.25># -0- Dec/01/2011 17:59 GMT
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