Euro-area governments agreed to cap overall rescue lending at 800 billion euros ($1.1 trillion), rejecting calls for even bigger defenses against the debt crisis, Austrian Finance Minister Maria Fekter said.
Some 300 billion euros in already pledged loans will go along with 500 billion euros in the planned permanent rescue fund to build the backstop, Fekter said. Funds remaining in the temporary rescue fund would be used only to get the permanent fund up to its target, she said.
“The euro zone is a lot more stable than a few months ago,” Fekter told reporters at a meeting of European finance ministers in Copenhagen today.
European policy makers are trying to strike a balance between meeting international demands for a more powerful war chest and opposition in donor countries led by Germany to providing additional aid for underperforming economies on the region’s fringes.
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