Several European countries, including Germany, are working on a permanent euro rescue mechanism that would include the creation of a new and independent funding institution, a press report said Thursday. Germany is considering a "European stability, growth and investment fund," according to a government paper seen by the Sueddeutsche Zeitung daily.
The mooted body would exist side-by-side with the European Central Bank, would benefit from the same independence and would be tasked with helping financially distressed eurozone countries under strict conditions. The German finance ministry acknowledged that a plan had been worked on by its staff but said it was not policy.
"The idea expressed in the article is in no way the official position of the finance ministry or federal government," it said in a statement. At the last European Council summit in Brussels this month, governments agreed to establish the framework for a future permanent eurozone rescue fund by March, to ensure the euro's long-term stability, the statement noted. Sueddeutsche Zeitung said governments which needed to borrow from the mooted fund would have to put up solid collateral such as gold reserves or private bonds.
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