Merkel rejects debt crisis proposals

Article reports that Angela Merkel, the German Chancellor, ruled out on the 6 December 2010 two of the most widely-backed ideas for combating the eurozone debt crisis, saying she saw no need to increase the size of the European Union’s €440bn rescue fund and that the bloc’s treaties did not allow for the creation of a Europe-wide bond.

Thus, Germany looked likely to block moves that some eurozone partners and the International Monetary Fund argue could help resolve Europe's debt crisis.

EUObserver, 7.12.10: No fresh move from eurozone finance ministers http://euobserver.com/9/31438

ESO: Background information: Final touches applied to EU crisis regime http://www.europeansources.info/record/final-touches-applied-to-eu-crisis-regime/

ESO: Background information: Financial markets ‘do not understand the euro’ http://www.europeansources.info/record/financial-markets-do-not-understand-the-euro/

ESO: Background information: E-bonds would end the crisis / Europe’s leaders at odds over bond plan http://www.europeansources.info/record/e-bonds-would-end-the-crisis-europes-leaders-at-odds-over-bond-plan/

BBC News, 6.12.10: Angela Merkel resists eurozone bond and debt proposals http://www.bbc.co.uk/news/business-11924853

Deutsche Welle, 6.12.10: EU divided over euro bonds, potential increase in bailout funds http://www.dw-world.de/dw/article/0,,6299555,00.html

EUObserver, 6.12.10: Pressure mounts to boost eurozone rescue fund http://euobserver.com/9/31432

EurActiv, 6.12.10: Euro ministers to boost rescue fund http://www.euractiv.com/en/euro-finance/euro-ministers-boost-rescue-fund-news-500298

---