Merkel: EMF a good idea as “last resort”

Sounds as though the German chancellor is somewhat less enamored of the idea of a European Monetary Fund to handle fiscal problems like the one facing Greece than she was earlier this week. She says it is a good idea but as a last resort.

The financial crisis will continue to to be an issue in the nlong term, she says.

Stability of the euro is the political responsibility of France and Germany, she says. The EU Treaty is not sufficient to deal woth situations like Greece. Sanctions with more teeth are needed to avoid the problems in the future, she says.

EUR/USD is easing after stalling around the 1.3680 level. It trades now at 1.36545. 1.3620/25 should provide support on dips near-term.