Eurozone bailout fund could reach €1 trillion
German sources have claimed the decision to raise the European Financial Stability Fund’s (EFSF’s) warchest is being planned in order to protect the likes of Italy and Spain from the situation faced by Ireland, Greece and Portugal.
While no increase in the funding level has been agreed, senior representatives of the German Social Democrats and Greens parties said the country’s chancellor, Angela Merkel, has privately said the move will take place.
“There will be a leveraging of the EFSF. It is clear this leveraging will be around that level,” said Greens leader Juergen Trittin, a comment echoed by his party colleague, Cem Ozdemir.
Talk of the possible move is also likely to calm stock markets over the coming days, giving EU governments more time to finalise plans on how to stave off a further escalation of the economic crisis.
