Trichet: Widen bailout fund
“We’re calling for maximum flexibility and maximum capacity, quantitatively and qualitatively,” Trichet said, responding to a question on whether the European Financial Stability Facility should be able to buy government bonds.
The ECB is pushing governments to shoulder more of the burden in tackling the fiscal crisis after Ireland was forced last month to seek a bailout, sparking concern that contagion will spread through the euro region. The ECB last week bought the most sovereign debt since June and Spanish bonds yesterday fell for a seventh day as it paid more in a debt sale.
