Germany backs wider rescue fund role

Germany is backing proposals to give new powers and lending capacity to the €440bn eurozone rescue fund, the European Financial Stability Facility (EFSF) even if that means increasing its financial guarantees, according to people familiar with the issue in Berlin and Brussels in January 2011.

Such a move would be part of a package of measures, including greater co-ordination of economic policymaking between the 17 eurozone members, that could be agreed by European Union heads of government at their next summit in February 2011.

José Manuel Barroso, President of the European Commission also said on the 12 January 2011 that he supported the new wider role for the rescue fund.

ESO: Background information: Focus sharpens on eurozone bail-out fund http://www.europeansources.info/record/focus-sharpens-on-eurozone-bail-out-fund/

ESO: Background information: European Financial Stability Facility (EFSF) http://www.europeansources.info/record/website-european-financial-stability-facility-efsf/

Deutsche Welle, 12.1.11: Barroso calls for speedy enlargement of euro rescue fund http://www.dw-world.de/dw/article/0,,14763754,00.html

Spiegel Online International, 12.1.11: Brussels Plans Bigger Euro Rescue Package http://www.spiegel.de/international/europe/0,1518,739072,00.html

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