BERLIN (MNI) – German Chancellor Angela Merkel on Wednesday
reaffirmed that Germany is ready to speed up the funding for the future
bailout fund, the European Stability Mechanism (ESM).
“Germany would be maybe willing — if the others do the same — to
pay somewhat more capital into the ESM right at the start,” Merkel said
at a joint press conference with Italian Prime Minister Mario Monti
here.
Regarding the inter-governmental treaty on a new fiscal pact in
Europe, Merkel said there are “good chances” that the negotiations will
be already finalized by January 30.
Monti evoked the need to bring down spreads on government bonds in
the Eurozone. He said the elevated Italian bond yields were “not
justified” any longer.
The Prime Minister said his government will now focus on boosting
economic growth, but cautioned that it will take time for the measures
to actually have an impact.
Monti stressed that his government is aiming for long-term
sustainable economic growth.
Regarding a possible financial transaction tax, both leaders said
they favored an introduction of such a tax on the EU-level but not only
on the level of the Eurozone.
Merkel explained that she personally would also agree to a
financial transaction tax only in the Eurozone, but that her coalition
partner, the FDP, would not go along with this.
–Berlin bureau: +49-30-22 62 05 80; email: twidder@marketnews.com
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