Bloomberg News

Euro Area Crisis Firewalls Should Be Used, G-20 Host Mexico Says

October 26, 2012

Euro-area governments can reduce market uncertainty by tapping into financial firewalls established to ease the region’s debt crisis, a Mexican finance official said ahead of a meeting of Group of 20 policy makers.

Mexico’s Deputy Finance Minister Gerardo Rodriguez said that G-20 finance officials meeting in Mexico City Nov. 4-5 won’t call on Spain to tap two existing rescue funds.

Still, such an action by any nation would be welcomed by investors and help consolidate confidence in the euro zone’s response to its debt turmoil, Rodriguez said.

“To show that they’re effective they have to be used,” Rodriguez said.

Pressure is building on Spain’s Prime Minister Mariano Rajoy to request a international bailout to strengthen the government’s finances after he requested in June a 100 billion- euro rescue of the country’s banks.

To contact the reporter on this story: Nacha Cattan in Mexico City at ncattan@bloomberg.net

To contact the editor responsible for this story: Joshua Goodman at jgoodman19@bloomberg.net


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