Merkel to seek Bundestag support for bolstering European bailout fund

GERMAN Chancellor Angela Merkel will seek backing from German lawmakers to bolster the euro bailout fund on the same day she heads to a European summit as banks joust with leaders over the size of losses they take on Greek bonds.

Leveraging the European Financial Stability Facility (EFSF) and how far to cut Greece’s debt load emerged as two main hurdles in the way of a deal to combat the debt crisis at tomorrow’s European Union summit, the second in four days. On the markets, the euro weakened as Merkel’s party proposed a full vote in parliament, also on October 26.

“We are still missing some important parts of the complex puzzle that is how to solve Europe’s debt crisis,” Kathleen Brooks, research director at Forex.com in London, said yesterday.