Bloomberg News

German ESM Liabilities Have Fixed Ceiling, Kampeter Tells FAZ

August 03, 2012

Germany’s financial liabilities toward the European Stability Mechanism, the euro-area’s permanent bailout fund, can’t surpass a fixed ceiling, Deputy Finance Minister Steffen Kampeter told Frankfurter Allgemeine Zeitung in a response to critics.

Some economists have interpreted the ESM contract as foisting unlimited liabilities on Germany under certain scenarios, Kampeter said in a guest column. No ESM clauses can force Germany to raise its input to the ESM above the agreed amount of 190 billion euros ($232 billion), in line with the country’s economic weighting in the euro area, Kampeter said.

To contact the reporter on this story: Brian Parkin in Berlin at bparkin@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net


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