A senior politician in Germany’s Free Democratic Party backed a European debt-sharing plan proposed by Chancellor Angela Merkel’s council of economic advisers as an alternative to joint euro-area bonds.
The proposed 2.3 trillion euro ($2.9 trillion) redemption fund would be big enough to shield Italy and Spain from “speculative attacks,” Alexander Graf Lambsdorff, chairman of the FDP group in the European Parliament, wrote in a guest editorial for Spiegel Online. The fund wouldn’t result in transfer payments between European countries, he said.
“It’s time to sign off on the pact,” Lambsdorff said. He said the pact could be sealed immediately because it’s a deal between states and doesn’t require a European contract. He also said the pact, as an agreement between states, is “outside European law” and therefore doesn’t violate the prohibition on bailouts, as “some people” claim.
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