BERLIN (MNI) – Germany’s Finance Minister Wolfgang Schaeuble
Wednesday reaffirmed that Germany will oppose any attempt to prolong the
European Financial Stability Facility (EFSF) beyond 2013.
“Anyone who believes that the EFSF will be prolonged beyond three
years is putting our trustworthiness at risk,” Schaeuble said in a
speech here. “We cannot do that.”
Rather, the time between now and 2013 needs to be used “to create
better solutions for the euro,” the Minister said. “Otherwise, it will
be difficult to defend the stability of the euro,” he warned.
The E440 billion EFSF was created earlier this year by EU leaders
to mollify markets at the height of the Eurozone’s sovereign debt
crisis. It would provide emergency loans to EMU states that get into
financial trouble and have no other recourse. Along with a pre-existing
fund of E60 billion and another E250 billion pledged by the
International Monetary Fund, the total available for that purpose would
be E750 billion.
But Klaus Regling, who heads the EFSF, has said recently — no
doubt to reassure edgy markets — that he does not expect the fund ever
to be tapped.
Schaeuble again called for a stiffening of the EU Stability and
Growth Pact, which will also require altering the EU Treaties, he
argued. Reforms are needed to counter moral hazard risks, he said. “In
future crisis, the creditors need take part in the solutions,” he
demanded.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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