Bloomberg News

Merkel, Schaeuble to Back Combined Rescue Funds, Spiegel Says

March 24, 2012

German Chancellor Angela Merkel and Finance Minister Wolfgang Schaeuble have abandoned their opposition to combining the two euro-area rescue funds, Der Spiegel reported, citing unnamed government officials.

The two German leaders have agreed that the permanent and temporary rescue funds may be “held in operation” for a transitional period, the magazine said in an e-mailed preview of its article. Two variations are in discussion, Spiegel said.

One possibility would add some 200 billion euros ($265.3 billion) in temporary European Financial Stability Facility funding already promised to Greece, Portugal and Ireland to the 500 billion euros planned under the permanent European Stability Mechanism, the magazine said. The second option would allow the funds to run parallel at a full combined capacity of 940 billion euros.

To contact the reporter on this story: Naomi Kresge in Berlin at nkresge@bloomberg.net

To contact the editor responsible for this story: Phil Serafino at pserafino@bloomberg.net


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