German Chancellor Angela Merkel said on Saturday any measure to stabilise the euro should come within a complete strategic package, dampening hopes for a quick decision on moves to tackle the eurozone debt crisis. Germany faces mounting pressure from the European Commission and its eurozone partners to strengthen a rescue fund for troubled member states, the European Financial Stability Facility (EFSF).
"If the discussion is about a further package of measures, it is above all important that we develop a complete strategy that must absolutely include closer economic co-ordination," Merkel told a news conference in Mainz after a meeting with other senior members of her ruling Christian Democrats. "You cannot simply raise another particular aspect each day," she added.
Berlin insists it sees no need to commit more funds to the 440 billion euro ($591.7 billion) EFSF, which has so far been tapped only by Ireland. Instead, the German government is open to a discussion about way to enable the existing fund to be used in full. Senior European sources told Reuters, however, that the sense of urgency in Berlin for boosting the fund had diminished after successful bond auctions this week in Spain and Portugal, the two countries seen most at risk of a bailout following rescues of Greece and Ireland last year.
Instead Germany is pushing for broader anti-crisis measures to be agreed at a summit of European Union leaders in March. Only around 250 billion euros of the 440 billion euro fund are effectively available to eurozone countries because of a complex loan guarantee system. That would probably not be enough in the event bailouts are needed of both Portugal and Spain.
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