ESM ‘may need more staff to tackle ongoing debt crisis’

An external consulting firm charged with evaluating the structure of Europe’s new permanent rescue facility has raised questions about whether it will have enough staff to function effectively, according to documents.

In a May 12 letter addressed to Klaus Regling, the head of the bloc’s temporary rescue fund, partners at AT Kearney warn that the approved staff of 75 for the European Stability Mechanism (ESM) may prove “too small” if the debt crisis rumbles on for several years.

The opinion comes less than six weeks before the ESM is due to come into force and as worries mount that Greece could be forced out of the currency bloc, a step that could fuel contagion to other member states, forcing the new facility into immediate action.