Bloomberg News

EU’s Next Rescue Fund Has Clear Limit, German Official Says

January 26, 2012

Jan. 26 (Bloomberg) -- Europe’s planned permanent rescue fund has a clear, agreed funding limit and isn’t on the agenda for the next European Union summit on Jan. 30, a German government official said.

The official, who briefed reporters in Berlin today on Germany’s goals for the summit, underscored Chancellor Angela Merkel’s resistance to a call by Italian Prime Minister Mario Monti for boosting the fund, known as the European Stability Mechanism, beyond its 500 billion-euro total.

Merkel, Monti and French President Nicolas Sarkozy will meet in Brussels on Jan. 30 immediately before the summit to discuss the agenda. Germany’s goal is for the 27-nation EU to agree on ways to promote economic growth and jobs to help offset austerity measures designed to stem the euro area’s debt crisis, said the official, who spoke condition of anonymity because preparations for the meeting are private.

The next report on Greece’s debt sustainability by European officials and the International Monetary Fund probably won’t be ready in time for the EU summit, the official said. Leaders at the meeting aren’t scheduled to discuss Greece’s second aid program or the country’s effort to negotiate a writedown of its private-investor debt, the official said.

To contact the editor responsible for this story: Tony Czuczka at aczuczka@bloomberg.net


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